CKPower Invests in 'Xayaburi Power' with 1,800 MB to Acquire 5% More Shares

Monday 08 March 2021 12:06
The Company to pay dividends on May 20, 2021
CKPower Invests in 'Xayaburi Power' with 1,800 MB to Acquire 5% More Shares

Mr. Thanawat Trivisvavet, the Managing Director of CK Power Public Company Limited (CKPower), or "CKP" in SET, announced that the Board of Directors has approved the acquisition of shares in Xayaburi Power Company Limited ("XPCL"), the operator of the Xayaburi Hydroelectric Power Plant ("Xayaburi HPP") in the Lao PDR. The Company intends to acquire 134,305,000 shares in XPCL, representing 5% of XPCL's registered capital solely from PT Sole Company Limited ("PTS"). The total amount of acquisition is approximately 1,826.55 million Baht. A request for approval will be made at the 2021 Annual Ordinary General Meeting of Shareholders of the Company, which is scheduled for April 22, 2021. Should the Ordinary General Meeting of Shareholders resolve to grant approval to the Company to execute such transaction, the Company expects to complete the acquisition of the shares of XPCL and the execution of the Share Purchase Agreement with PTS by the third quarter of 2021.

Upon the completion of the purchase, CKPower's shareholding in XPCL will increase by 5% from 37.5% to 42.5% of XPCL's registered capital. Other shareholders of XPCL include Natee Synergy Company Limited, holding 25% of shares, EDL-Generation Public Company, holding 20% of shares, and Electricity Generating Public Company Limited, holding 12.5% of shares. As of December 31, 2020, XPCL's registered capital is 790 million USD or equivalent to 26,861 million Baht (the exchange rate: 1 USD = 34 Baht) at the par value of 10 Baht per share.

Xayaburi Power Company Limited is a legal entity registered under the law of the Lao PDR since June 22, 2010. It has been granted a 31-year concession to generate and distribute electricity from the Xayaburi HPP, which is a run-of-river hydro power plant located in the Lao PDR. The power plant generates electricity through a barrage constructed on the Mekong River which raises the water level slightly without diverting the water from the Mekong River and without impounding the water like reservoir type hydropower plants do. The water inflow is always equal to the water outflow. The plant has an installed capacity of 1,285 MW with annual power production of 7,600 GWh on average. Xayaburi HPP provides 1,220 MW of installed capacity for sale of electricity to the Electricity Generating Authority of Thailand and 60 MW for sale to the Electricite du Laos.

As for Year 2020, which was the first full year of electricity production, XPCL reported the total revenue of 12,079.97 million Baht and net profit of 968.29 million Baht. The average water flow through the power plant during 2020 was 2,533.5 cubic meters per second and the electricity sales volume was 6,301.4 GWh.

Mr. Thanawat believes that this acquisition will open up an opportunity to generate more revenue and a long-term stable rate of return in the form of profits sharing and dividends as well as enhancing the Company's investment portfolio in renewable energy, which is considered to be its key investment. Currently, CKPower is producing and distributing electricity from various types of power plants, both domestically and internationally. The Company's total current installed capacity is 2,167 MW which includes 1,900 MW from hydroelectric power plants, 238 MW from cogeneration power plants and 29 MW from solar power plants. The current equity installed capacity of CKPower is 939 MW.

Mr. Thanawat announced that "on 20 May 2021 CKPower will pay dividends of 0.035 Baht per share according to the approval of the Board of Directors".

About CKPower:
The Company engages in production and sales of electricity generated from three sources of energy under its 13 power plants with the total installed capacity of 2,167 MW, consisting of two hydroelectric power plants, the Nam Ngum 2 Hydroelectric Power Plant with 615 MW installed capacity, operated by Nam Ngum 2 Power Company Limited (46% owned by CKPower through its shareholding in SouthEast Asia Energy Limited) and the Xayaburi Hydroelectric Power Plant with 1,285 MW installed capacity, operated by Xayaburi Power Company Limited (37.5% owned); two cogeneration power plants with 238 MW installed capacity, operated by Bangpa-in Cogeneration Limited (65% owned); and nine solar power plants, comprising seven under Bangkhenchai Company Limited (100% owned) with total installed capacity of 15 MW, one under Nakhon Ratchasima Solar Company Limited (30% owned) with 6 MW installed capacity and one under Chiangrai Solar Company Limited (30% owned) with 8 MW installed capacity.

Source: Pro MassComm