Solar Power

Global Power Synergy Public Company Limited (GPSC) has announced the resolution of its Board of Directors meeting on November 28, 2018, to approve GPSC to enter into the share purchase agreement to acquire 100% shares of the Target Companies, directly or indirectly, through the subsidiary of GPSC. The Target Companies consist of N.P.S. Stargroup Co., Ltd., World X Change Asia Co., Ltd., and P.P. Solar Co., Ltd., that operate solar power generation business in Thailand (Solar Power Producers) and have the total power generation capacity of 39.5MW. GPSC also invested in TerraForm Global Operating (Thailand) Co., Ltd., that provide operation and maintenance service for solar power plants from the group of companies of the seller, which is the group of Brookfield Renewable Partners, a global operator of renewable energy business. The total value of the transaction is approximately ฿3,070,000,000, including the acceptance of the assignment of rights under the loan agreements from the original shareholders, whereas the final acquisition price may be adjusted due to some factors. The acquisition of solar power plants was made to pursue the growth strategy of GPSC, which related to expansion of renewable power business and to enhance the value from solar power expertise of GPSC. In addition, the investment involved a purchase of the business that has long-term power sale and purchase agreements, which will continuously generate stability in the revenues and support sustainable growth to GPSC. As of today, GPSC has entered into the share purchase agreement relation to the shares of the Target Companies with the group companies if the seller. In this respect, the Business Purchase Transaction as described will occur upon approval of the related governmental agency and satisfaction of the conditions precedent under the share purchase agreement. The completion of the Business Purchase Transaction is expected to be in the first quarter of 2019 and the funds are from the working capital of GPSC or the loan from financial institutions. Upon the completion of the Business Purchase Transaction, the Target Companies will have the status as the subsidiaries of GPSC.