Super Earth Energy Co Ltd, a subsidiary of Thailand’s listed renewable energy firm Superblock Pcl, has received its board approval to acquire Green Power Energy Co Ltd for 1.28 billion baht ($36.8 million).
Green Power Energy operates a waste-to-energy power plant with total capacity of 9.9 MW with a Power Purchase Agreement to sell 9 MW to Provincial Electricity Authority.
The company said, in the statement, around 1.23 billion baht of total value will be paid for the value of project cost, 40 million baht is for the acquisition of common shares and the remaining 6.98 million baht for the payment to the full of par value of shares.
It will fund this acquisition by cash and loan from financial institution, said Superblock’s chairman Jormsup Lochaya.
Green Power’s power plant is scheduled to be completed and the additional purchase price at the rate of 3.50 baht per kilowatt hour for a period of 7 years from the date of Commercial Operation Date is applicable from 2018 until 2024.
The company said the rate of return to be received from the investment for a period of 20 years is 41.14 per cent, and the payback period after the payment of debt will not exceed 4.22 years.
Meanwhile, Super Solar Energy Co Ltd, another subsidiary of Superblock, also received the Board’s resolution to spend 1.26 billion baht on acquiring 49 per cent of common shares in 12 solar farm projects from five undisclosed companies. The 12 solar projects will have a combined capacity of 48.2 MW.
Superblock reported net profit of 59.65 million baht in the second quarter, up from a loss of 183.94 million baht in the same quarter last year. It also recorded net profit of 77.30 million baht in the first six months, compared to the loss of 217.56 million baht in the same period last year.
Currently, it has total electricity generating capacity of 700 MW.
“Through a series of acquisitions in domestic and overseas, we target to boost it to 1,000 MW by the end of this year and 2,000 MW next year,” the chairman added.