GPSC Faces Blockage, GLOW May Sink Further in the Bloodied Trade Day
ERC has come to the resolution to deny GPSC from the acquisition of GLOW.
The Energy Regulatory Commission (ERC) has come to a unanimous resolution after the meeting to disapprove Global Power Synergy Public Company Limited (GPSC), an affiliate of PTT Public Company Limited (PTT), in the acquisition of 69.11% in Glow Energy Public Company Limited (GLOW).
ERC has given the reason of the disapproval as it may violate Energy sector, and the business act of antitrust. If the acquisition is to be completed, GPSC would own about 80% of all private power purchase agreements in Map Ta Phut Industrial Estate.
According to “Kaohoon Online”, GLOW’s shares had been increasing since the day of the announcement on taking over from GPSC (June 15, 2018). The price hiked to ฿95/share as investors expected a return as close as it can get to the tender offer price at ฿96.50/share. However, after the disapproval of ERC, GLOW will likely return to its original price before the tender offer.
GPSC said that it is in the study process on the further procedure and it will not make a tender offer of the securities of GLOW until the conditions precedent is fulfilled.