The Board of Directors of Ua Withya PCL (UWC) has approved the acquisition of two biomass power plants in Buriram province for a total consideration of 923 million baht ($25.46 million).
The power plants, Advance Bio Power and Satuk Biomass, have a combined generating capacity of 17.4 MW, which will enhance UWC’s total capacity to 48 MW.
UWC managing director Peratus Dhanarachwattana told DEALSTREETASIA that it would hold 99.99 per cent stake in both power plants and it expects to generate 340 million baht in annual revenue and 60 million baht of earnings before interest and tax from these two projects.
“This deal is as part of our plan to generate 60 per cent of our revenue from power plants and 40 per cent from high-voltage transmission tower production.
UWC’s core business was previously to produce and supply high-voltage transmission tower. Due to the delay of the country’s infrastructural investments, it has decided to fully diversify into renewable energy and power plant business since last year.
In 2015, it acquired a 9.9-MW biomass power plant in Nakhon Ratchasima. The plant, which has started selling the electricity to the Provincial Electricity Authority since December, is expected to make over 200 million baht in revenue this year.