Thai Tap Water Supply Plc (TTW), the country’s largest private tap-water supplier, will aggressively expand into the energy business, aiming at income from power to account for 35% within five years.
As the market for water supply in Thailand grows saturated, TTW will begin booking revenue from power investments from the first quarter of next year onwards, said managing director Sompodh Sripoom.
TTW shareholders yesterday approved spending 2.76 billion baht to buy a 30% stake in CK Power Ltd, a unit of the SET-listed Ch. Kanchang (CK) that operates Southeast Asia Energy Ltd (SEAN) and its Nam Ngum 2 hydroelectric plant in Laos.
The share acquisition of CKP marks TTW’s first investment in the power sector and its first project outside Thailand.
“These power projects are operating already. That’s why we think our investment is low-risk,” Mr Sompodh said.
By next year, TTW aims for realised revenue of 190 million baht from the acquisition.