Thailand's Eastern Power buys 2 Vietnam wind-power projects
BANGKOK, NNA - Thailand’s major energy generating company Eastern Power Group Public Co. is taking over two wind power projects in Vietnam in its push to grow revenues.
Amounting to 2.4 billion baht ($77.8 million), the investments for the complete acquisition will be done by its subsidiary EPVN W1 (HK) Co. in Hong Kong, according to a filing to the local stock exchange on Tuesday.
EPVN W1 (HK), which is wholly owned by the group's Eternity Power Public Co. (ETP), will acquire the Huong Lunh 3 and Huong Linh 4 wind power projects in stages till next year.
Eastern Power Group, which generates power from renewable sources such as solar in Thailand, will hold more than 3 million registered shares after full transactions are completed in October 2021, according to the statement.
The wind power investment in Vietnam will pave the way for potential investments that support businesses and growth of the group, Yut Chinsupakhul, chairman of Eastern Power Group, told Thai news outlet Krungthepthurakit.
The investment is expected to bring 450 million baht to group revenues annually, he said.
The two wind power projects were rolled out by Huong Linh Fresh Energy Development Joint Stock Co. and Huong Linh Reproduce Energy Development Joint Stock Co. Both firms are wholly owned by Vietnamese companies Mai Van Hue, Tai Hoan Cau Corporation Joint Stock Co. and Tran Thi Ha My.
Each wind power facility is expected to produce 30,000 kilowatts. The total electricity generation will be sold to the state-owned Vietnam Electricity (EVN) under a 20-year agreement.
Despite the impact of the coronavirus pandemic on the overall economy, the company managed to make a robust revenue increase of 37.5 percent or 427.44 million baht in the first quarter of 2020, compared to the same period last year
Selling electricity contributed 191.02 million baht to total revenues of 427.44 million baht in the first quarter of 2020, according to its financial statement.
Its publishing business generated 152.57 million baht while other revenue streams come from its businesses like printing, packaging and installation services.