EP Invests ฿1.88Bn to Acquire 48% of TAC Energy for Developing Cogeneration Power Systems

Eastern Power Group Public Company Limited (EP) announced that the Board of Directors at the Meeting held on October 18, 2021, has resolved to approve Eastern Cogeneration Company Limited (E-COGEN) to entering into a transaction to purchase 9,472,400 shares (at par value of Baht 100.00) or equivalent to 47.60 percent of the total paid-up shares of TAC Energy Company Limited (TAC) from Chubu Electric Power Thailand SPP B.V. (CHUBU) at a price of Baht 199.99 with a total value of Baht 1,885,007,600.00, which will be paid as a deposit of 5.00 percent of the share purchase price as of the signing date and the remaining balance will be paid on the transfer date of TAC within October 2021.

TAC operates business by holding shares in companies that produce and sell electricity from co-generation power, including 7,420,000 shares in PPTC Company Limited (PPTC), representing 50.00 percent of the paid-up capital, and 11,676,000 shares in SSUT Company Limited (SSUT), representing 40.00 percent of the paid-up capital. 

After entering into the transaction, EP will hold directly and indirectly in PPTC and SSUT through its subsidiary E-COGEN.

For the benefit of the company, EP expects to increase the shareholding in the small power plant business (Cogeneration power system), PPTC and SSUT and will have 100% control over TAC as a result, it has total management power in SSUT and its shareholding in PPTC increases to 74.50 percent of the paid-up shares.

In addition, the company will have more revenue from sales of electricity and steam to generate more stable and continuous profits for the company.