GLOW Closes the Deal, Ethically Selling SPP1 to BGRIM under ERC’s Condition
The merging of GLOW and GPSC is about to complete as GLOW ethically sells its SPP1 to BGRIM.
B.Grimm Power Public Company Limited (BGRIM) has reported that the company entered into an agreement to purchase SPP1 from Glow Energy Public Company Limited (GLOW).
On 22 February 2019, B.Grimm Power Service (Laem Chabang) Limited (BGRIM’s subsidiary) has entered into Share Sale and Purchase Agreement with Glow Company Limited (a wholly owned subsidiary of GLOW) to acquire 100% of total issued shares in Glow SPP1 Company Limited (Glow SPP1) which has been operating Glow SPP1 Power Plant in WHA Eastern Industrial Estate (Map Ta Phut) Rayong Province for a total of THB 3,300 million.
The acquisition is subject to the condition precedent to the completion that the Energy Regulatory Commission of Thailand (ERC) must approve of the entering into such share purchase transaction.
As for the benefit from this acquisition, Glow SPP1 will create potential growth and strengthen tBGRIM’s position as a Small Power Producer (SPP). This transaction is also consistent with the business expansion plan of BGRIM to increase opportunities to compete in Map Ta Phut area.
Glow SPP1 Power Plant is a cogeneration plant with a production capacity of 124 MW, a steam capacity of 90 t/ hour, and a demineralization water capacity of 190 cu.m./ hour. This power plant has been operating under the SPP PPAs scheme since 1998, and it is qualified to apply for the SPP PPAs extension and replacement program with National Energy Policy Council (NEPC) on January 24, 2019.
On January 31, 2019, “Kaohoon Online” made a report regarding Phatra Securities, as a financial advisor in the deal between Global Power Synergy Public Company Limited (GPSC) and Engie Group (GLOW’s seller), will buy the SPP1 power plant from GLOW according to ERC’s condition and GPSC will repurchase the SPP1 once the merging process with GLOW is complete.
The deal was considered to lack of legitimacy in certain ways and may not get approval from ERC. Thus, the acquisition of SPP1 from BGRIM will solve the problem between GPRC, GLOW and Phatra, and complete the merging process of GPRC and GLOW according to ERC’s condition.