ASEAN KEY DESTINATIONS
Japanese to invest in Egco
Tokyo Electric Power Co (Tepco) will invest 21 billion yen (US$254 million) for a stake in SET-listed Electricity Generating Plc (Egco) as the Japanese firm seeks to expand outside Japan.
Tepco, Asia's largest power company, will buy a 12.286 percent stake in the Thai independent power producer through the Japanese trading group Mitsubishi Corp, which will purchase the shares from Hong Kong's CLP Holdings Ltd, and sell on a portion to Tepco.
Through the deal, in which the two Japanese shareholders will be participating in the management of Egco, Mitsubishi will lift its interest in Egco to 12.286 percent from the current 11.21 percenr, at a cost of about 2 billion yen.
The transaction involving Egco was a restructuring by CLP Holdings of its OneEnergy venture with Mitsubishi in a swap of assets and cash. CLP said it would book a net gain of HK$881 million. CLP Holdings is acquiring the 50 percent of OneEnergy it doesn't already own from Mitsubishi, while selling off its 13.4 percent stake in Egco. Mitsubishi will take ownership of OneEnergy Thailand, a subsidiary of OneEnergy.
Egco, the country's second-largest private power producer after Ratchaburi Electricity Generating Holding Plc, is 25.4% owned by the state-owned Electricity Generating Authority of Thailand (Egat), the country's sole power buyer.
CLP Holdings, including One Energy, owned about 24 percent of Egco. Egco has interests in 14 power plants in Thailand, Laos and the Philippines with a combined capacity of about 4,277 megawatts, accounting for about 12 percent of Thailand's generating capacity.
As part of a plan to invest in renewable energy projects, Egco has joined with Mitsubishi and CLP Holdings to build a 73-megawatt solar power plant, one of the world's largest solar energy projects, in Lop Buri province.
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