Singha Estate Plc, a Thai real estate investment and development company, announced on March 24, 2021 that it has acquired 30% of the 400 MW three major combined heat and power plants and obtained the exclusive right to purchase, with a total investment of 1.392 billion baht. .
The first power plant was an operational 123 MW combined cycle heat and power plant owned and operated by Angthong Power Company Limited, located in the "World Grain Valley" industrial zone in Ang Thong, central Thailand. The second and third plants each have a capacity of 140 megawatts. They are currently under construction and will be put into operation in 2023. They are also located in the "World Grain Valley" Industrial Park. The licenses for these power plants are owned by B.Grimm Power (Ratchaburi) 1 Limited and B.Grimm Power (Ratchaburi) 2 Limited. The three acquisitions will be approved by shareholders at the Singha Estate Annual General Meeting on April 23, 2021.
Mr. Chutinant Bhirombhakdi, Chairman of the Board of Singha Estate Plc, said: “We have obtained these rights on very attractive terms. They are an important part of the puzzle game and will make Singha Estate one of the most important real estate, power generation and engineering services companies in Thailand. One, triple the scale of our business to 20 billion baht in three years."
Further supplement the real estate business
Singha Estate recently announced that 2021 is the company's transition year, and the company will enter the next stage of business development. Its business will complement its three core real estate businesses, including commercial real estate, residential real estate, and resorts and hotels.
Mr. Bhirombhakdi said; “We hope that the business can grow and develop, combining stable and sustained returns with exciting growth opportunities. We will use the synergy between our four business platforms to enhance our competitiveness.”
Based on the power field
Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Plc, said: "The license for a power plant of this size is very rare, so we are particularly pleased to have the rights to a large amount of equity in three important power plants. They will enable us To gain a foothold in this field. Our option is particularly attractive because we have pre-sold 270 MW (about 70% of the total output of the three power plants) at a guaranteed price. This ensures our sustainability Revenue will enhance the flexibility of our business."
According to Rungkwansiriroj, Angthong Power Plant is the only power plant in Thailand that can be profitable even without being sold to independent users, and 75% of its power generation is obtained through a 25-year power purchase agreement with the Electricity Authority. Thailand. She pointed out that “the use of advanced technology has reduced costs and further increased the profitability of the business beyond the initial estimate.” The three power plants are expected to generate 7.5 billion baht in revenue by 2024.
Ms. Rungkwansiriroj said: "In addition to the synergies we foresee from these acquisitions, their returns as independent businesses are also very attractive. At the end of the "back-end equity" arrangement, there is an withdrawal mechanism between us and the bank, so Singha Estate requires only minimal investment." Singha Estate has a net debt-to-equity ratio as low as 0.96 and can use a credit line of 25 billion baht. Editor/Ge Siyu
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