Thailand's Energy Absolute to acquire 40% of Nex Point to grow electric vehicle business

19, May. 2020

Photo by Jan Kaluza on Unsplash
Photo by Jan Kaluza on Unsplash

BANGKOK, NNA - Thailand’s biodiesel and electricity firm Energy Absolute Public Co. has announced its plan to buy 40.013 percent of the newly issued shares of machinery equipment manufacturer Nex Point Public Co (NEX).

In a statement to the local stock exchange, Energy Absolute said it is investing in NEX to jointly carry out the manufacturing, assembling and sales of electric buses, commercial vehicle and other private vehicles.

With the offered price of 2.20 baht ($0.07) per share, the investment for the huge stake or 670 million shares is worth 1.4 billion baht.

NEX currently has a registered capital of 858 million baht divided into more than 604 million ordinary shares, each valued at 1 baht.

For Energy Absolute, which has been engaged in renewable energy business, the investment would expand its business scope and enhance its competitiveness.

The proposed purchase through private placement will be carried out by its subsidiary, EA Mobility Holding Co. (EMH). It is subject to approval by NEX shareholders at a meeting on July 10.

NEX engages in the business of manufacturing machine equipment, electronic components, car rental, bus repair and maintenance services and others related to transport vehicles.

Energy Absolute manufactures and distributes methyl ester biodiesel products, high-speed diesel oil and pure glycerine products. It also generates electricity from solar and wind power and offers consultation on alternative electric energy.