SUPER Aims to Increase Shareholding Stake in 2 Subsidiaries to Pump Revenue Recognition

Super Energy Corporation Public Company Limited (SUPER) has announced the resolution of its Board of Directors’ held on February 3, 2020, which approved two acquisitions for the company.

 

1) The Board of Directors approved Super Solar Energy Company Limited (SSE), a subsidiary of the company entering into the agreement to purchase shares in WXA4 Company Limited (WXA4), WXA 5 Co., Ltd, WXA 6 Co., Ltd and WXA 7 Co., Ltd (Collectively WXA 4567), a company’s subsidiaries from the 2 existing shareholders in WXA 4567 are Energy Vantage Limited and Miss Chatchanun Boontanapiboon Collectively known as ” the seller groups” in the proportion of 51%. With the total value of the transaction not exceeding Baht 190,000,000 (47,500,000 baht per company). After the transaction, SSE will hold 100% of shares in WXA 4567 (Formerly SSE holds 49% of shares in WXA 4567).

WXA 4 WXA5 WXA6 and WXA7 operate solar power plant 1 project per company with a capacity of 4.95 megawatts per project (total of 4 projects with a total production capacity of 23.80 megawatts) and have already been a commercial operation to the Provincial Electricity Authority on 30 April 2016.

The Maximum transaction size calculated based on the Net Tangible Asset basis is equivalent to 1.79% and combined with the same transactions that occurred in the previous 6 months. As a result, the total value of transactions equal to 12.16% based on the consolidated financial statements of SUPER ended September 30, 2019, which is lower than 15 percent.

 

2) The Board of Directors approved Green Bi-O Mahasarakham Co., Ltd (GBOM), which holds 100% of the register capital by Super Solar Energy Co., Ltd (SSE) that SSE is a subsidiary of SUPER entering into the agreement to purchase shares in the PKT Green Co., Ltd (PKTG), a company’s subsidiaries from Mrs. Kanokthorn Wongsiri (the seller) which is the existing shareholders in PKTG, in the proportion of 15%. With the total value of the transaction not exceeding Baht 6,980,000. After the transaction, GBOM will hold 100% of shares in PKTG (Formerly GBOM holds 85% of shares in PKTG).

PKTG as a “sponsor” for the production of electricity from solar installations on the ground for government agencies and agricultural cooperatives Phase 2 in 1 project with a total installed capacity of 4.0 MW and has already been a commercial operation to the Provincial Electricity Authority on 24 December 2018.

The Maximum transaction size calculated based on the Net Tangible Asset basis is equivalent to 0.04% and combined with the same transactions that occurred in the previous 6 months. As a result, the total value of transactions equal to 12.16% based on the consolidated financial statements of SUPER ended September 30, 2019, which is lower than 15 percent.

 

These acquisitions of shares in subsidiaries will increase the opportunity for revenue recognition, increase control and flexibility in management and reduce conflicts of interest with other groups of shareholders.