B Approves to Invest ฿160m to Acquire 40% Share in 58MW Solar Power Plants in Vietnam

Begistics Public Company Limited (B) has approved to invest in the 2 solar power plant projects by purchased newly issued shares of GA Power Pte. Ltd. (GA Power) 40% of paid-up shares. The solar power plants located in Ha Tinh Province, Vietnam with a total installed capacity of 58.00 MW and the total investment is not over THB 160 million.

B will purchase 40% of newly issued shares of GA Power which will operate 2 of the solar power plants in Ha Tinh Province, Vietnam with total installed capacity of 58.00 MW while waiting for Power Purchase Agreement (PPA) with Vietnam Electricity (EVN) at the purchase rate (Feed-in Tariff” or FiT) at 0.092 USD per unit for a period of 20 years. It is expected to finish construction of the solar power plants and began commercial operation date (COD) within July 2020. The Company will invest in the newly issued shares of GA Power who has PPA of 2 solar power plant projects, with the following details: 1) The Company purchase newly issued shares of GA Power at Par SGD 1 per share for proportion of not more than 40% of paid-up shares with total transaction value is not over THB 160.00 million. 2) The 2 solar power plant projects with a total installed capacity of 58.00 MW are expected to achieve commercial operation date (COD) within July 2020.

For invest in newly issued shares of GA Power who will invest and operate solar power plant projects in Vietnam which are expected to get a stable income, cash flows from dividends and performance due to 20 years of PPA with EVN and it can diversify the risk of the Company.

According to the investment, B’s source of the fund will use the capital from shares issued in February 2018, capital from land selling and capital from share issue in July 2019. The fund shall be executed according to the resolution of Extra General Meeting 1/2019.
B expected to invest in the company which has stable income and performance due to investing in solar power plant project and the diversification of risk from dependence on the port, transportation and logistics business which is the only current business. Additionally, this investment with project IRR and equity IRR of approximately 9.63 – 9.94% per year and 12.64 – 13.75% per year, respectively, while the business risk is low. Therefore, it is considered a good investment.  

Moreover, the Executive Board Meeting on 1 August 2019, has approved B to invest 10% ordinary shares of Moonshot Venture Capital Company Limited (Moonshot). B has invested through the purchase of 200,000 ordinary shares in Moon Shot, at a price of THB 100 per share, totaling THB 20,000,000. The price is a par price. The investment in Moon Shot will be a business extension with the related platform. With construction material traders which will make Begistics To Technology that can be used to increase the potential of the organization to increase revenue and reduce business costs as well as developing work processes within the organization to have a competitive advantage, In addition, such investment can generate a return on investment in the future and also provides opportunities for the company can create new businesses. With high growth potential also increased.