Thailand Ratch Group Plc acquisitions up capacity
Source：Bangkok Post Newspaper
From：Taiwan Trade Center, Bangkok
Update Time：2021/07/14
Ratch Group Plc, Thailand's largest private power generation firm by capacity, has purchased coal-fired thermal power plants belonging to PT Paiton Energy (PE) -- the operator of Paiton Power Generation Complex in Indonesia -- from Mitsui & Co in a move to increase its power generation capacity.
PE is among several companies which signed contracts on June 16 to sell shares to RH International (Singapore) Corporation Pte (RHIS), a subsidiary wholly owned by Ratch.
The companies operate coal-fired thermal power plants with a total capacity of 2,045 megawatts (MW).
PE power plants, Paiton units 3, 7, and 8, are located 150 kilometers southeast of Surabaya in Indonesia's East Java.
Paiton Power Generation Complex is a key energy project in Indonesia, with a power purchase agreement with PT Perusahaan Listrik Negara (PLN), which is Indonesia's state electricity firm. The power purchase agreement has a remaining term of 21 years.
"Our acquisition of power generation assets in operation will be the quickest way to expand our business as we want to achieve a target of 10,000MW by 2025," said Ratch president Kijja Sripatthangkura, after the company reported its share purchase to the Stock Exchange of Thailand on Tuesday.
At present, Ratch runs power plants with a combined capacity of 7,215MW.
Its latest investments will see RHIS hold a 45.5% share in the power plant business and a 65% stake in the operation and maintenance business of power plants. This is in line with Ratch's plan to invest in the energy business.
Transactions for the share purchase are scheduled to be completed by March next year.
The purchase deal follows Mitsui & Co's plan to sell its shares in PE, one of the largest independent power producers in Indonesia.
The deal was reportedly valued at more than US$1 billion (31.8 billion baht), according to Business Times.
Ratch will continue to look for investment opportunities domestically and overseas across the Asia-Pacific, Mr. Kijja said.
Its asset acquisition is part of the 15-billion-baht capital spending Ratch has already allocated for this year.
Some 8 billion baht will be spent on its new power plant development projects.
Source: https://www.bangkokpost.com/