RATCH Invests in 2,045MW Indonesian Power Plant, Expecting Capital Raise for Future Funds

Ratch Group Public Company Limited (RATCH) announced that RH International (Singapore) Corporation Pte. Ltd. (RHIS), RATCH’s indirect wholly owned subsidiary, signed the sale and purchase agreement for the sale of ordinary shares in a group of companies operating the coal-fired thermal power plants with a total capacity of 2,045 MW located at Paiton Power Generation Complex.

 

This project is one of Indonesia’s vital national objects in the energy industry and has an executed power purchase agreement with PT Perusahaan Listrik Negara (PLN), which is Indonesia’s state electricity company, with a remaining term of 21 years.

 

As a result of the investment, RHIS will hold 45.515 percent of shares in the power plant business and 65 percent of shares in the operation and maintenance business of the power plants which is in line with RATCHs investment plan of future expansion into energy business and related businesses. RATCH expected to complete the investment by March 2022.

 

In the meantime, the Board of Directors of RATCH approved to propose to the Extraordinary General Meeting of Shareholders to consider and approve the increase of the registered capital of the company from THB 14,500,000,000 to THB 22,192,307,700 by way of issuing new ordinary shares in the amount of 769,230,770 shares at par value of THB 10 each, totaling THB 7,692,307,700 for issuing and offering the shares in proportion to the shareholding of existing shareholders, excluding shareholders whose holding of such share would subject the company to any obligations under the law of other jurisdictions and for issuing and offering the shares under the private placement at an offering ration of not less than 1.885 existing ordinary shares to 1 new ordinary share.

 

The funds will be used for investment in domestic and foreign projects being undertaken at present or to be undertaken in the future, including, but not limited to, a power plant project in the Republic of Indonesia, repayment of indebtedness and as general operating costs as well as working capital of the company.

 

The Extraordinary General Meeting of Shareholders will be held within November 2021. The exact date will be further determined and announced by the company.