Thailand listed IFEC takeovers wind-energy operator SGC for $10m

Construction News


Thailand-based wind power plant operator Inter Far East Wind International (IWIND), a subsidiary of Inter Far East Engineering PCL (IFEC), has acquired all the ordinary shares in SGC Wind Energy Company for 330 million baht (approx. $10 million).

SGC has a registered and paid-up capital of 250 million shares and IWIND has acquired 2,499,991 shares of SGC from the former shareholder Wasin Duangsang at the price of 132 baht per share, higher than the par value of 100 baht per share.

Once the transaction is completed, SGC will become another subsidiary of IFEC.

Thanawat Chansuwan, director of IFEC, said that the source of fund for this acquisition would come from the company’s cash. “We believe that the acquisition will boost and sustain our growth in the long run. SGC’s wind farm has a good potential and conforms to our business plan, which is to focus on renewable energy business, including wind energy,” he said.

Currently, SGC operates a wind farm in Nakhon Si Thammarat province, which has commenced operation in February this year. The plant has signed the contract to sell the electricity of 8.965 megawatts to the state agencies for five years. The contract will be renewed every five years automatically.

As of May 22, SGC has total assets of 247.45 million baht, total liabilities of 0.54 million baht and total shareholders equity of 246.91 million baht. It recorded a revenue of 2.45 million baht in 2014, slightly decreasing from 2.55 million baht in 2013.

Meanwhile, its net profit was posted at 2.44 million baht last year, a surge of 50 per cent year-on-year.