RATCH Takes 40% of “Asia Water”, Booking Income from Laos’s Major Water Supplier
RATCH has signed a shareholders agreement and sale and purchase agreement of shares to jointly invest in Sandin Water Supply Project in Lao.
Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) has announced that Ratch-Lao Services Company Limited (RATCH’s wholly owned subsidiary) has signed shareholders agreement and sale and purchase agreement to purchase 40% of the registered capital of Asia Water Sole Co, Ltd. (Sandin Water Supply Project in Lao PDR), from Asia Investment, Development & Construction Sole Co., Ltd.
The 40% stake comprises with 4,800,000 ordinary shares with the par value of Kip 8,400/share, amounting ฿194.59 million. The share payment is divided into two installments. The first installment will be made at 10%, totaling ฿19,459,000 within 15 days after the agreement signing date; and the final installment will be made for the remaining amount, totaling 175,131,000 within 30 days after all conditions precedent are achieved, which is expected to be within February 2019.
After the transaction is completed, RATCH would jointly participate in the Sandin Water Supply Project’s operation by the investment proportion through Ratch-Lao Services Company Limited and would take part in the support of the policy regarding the improvement of the quality of life of the people in Lao. This would also expand investment opportunities for RATCH’s group as well.
The project is located in Naxay Thong, Vientiane Capital, Lao. Its business is generating water supply and sell water to Nampapa Nakhone Luang under its 50-year concession with the total generating capacity of 48,000 cubic meters per day. The generating capacity is divided into two phases. Phase 1 had already commenced its operation since December 2018 at 24,000 cubic meters per day, while Phase 2 will expand its generating capacity to 48,000 cubic meters per day by approximately 2031.
