BCPG Acquires 100% Shares of Nam San 3A, Aiming to Fully Operate Hydro PP in Laos!

As BCPG Public Company Limited (BCPG) has announced that its Board of Directors meeting No. 10/2562 held on 17 September 2019 resolved to approve the acquisition of all shares in Nam San 3A Power Sole Co., Ltd. to invest in hydro power plant project with the total installed capacity of 69 MW located in Xiangkhouang in Lao People’s Democratic Republic and BCPG had already entered into the share purchase agreement to invest in such a project on 19 September 2019.

The acquired asset is 100% of the total issued and sold ordinary shares, fully paid-up in Nam San 3A, which are 1,000,000 shares. The par value is LAK 232,000 per share (approximately THB 804.35 million), with the total purchase price of not exceeding USD 174.04 million (or approximately THB 5,315.18 million).

Nam San 3A is a Build-Operate-Transfer (BOT) concessionaire to develop and operate the Project. Nam San 3A is also a contracting party to the power purchase agreement with Électricité du Laos (EDL). The contract duration is 27 years starting from 29 January 2016 (Commercial Operation Date) with the total installed capacity of 69 MW. Currently, the Project is completely constructed and in its commercial operation

Nam San 3A booked 516.5 million baht of profit in 2016, 578.4 million baht in 2017 and 585.8 million baht in 2018 from the revenue of 701.8 million baht, 777.4 million baht and 789.5 million baht, respectively.

BCPG asserts that investing in hydroelectric power plant project is the diversification which will reduce risk occurred from relying on the revenue from other related renewable energy businesses and will reduce the fluctuation of BCPG’s business operation result in the future. It will enhance the frequency of the dividend distribution to the shareholders. In addition, such investment will enhance BCPG’s capacity in business operation in long-term.

The investment will expand the investment of the Company to Lao People’s Democratic Republic, a country with high potential of economic growth and hydro power plant development.

Moreover, the Project has already commercially operated. Therefore, BCPG will promptly recognize the revenue after the investment. The remaining concession contract duration of the Project is more than 20 years.