Thai energy producer Prime to form new subsidiary for foreign growth
BANGKOK, NNA - Thailand's renewable energy developer and operator Prime Road Power Public Co. will set up a new subsidiary to support the company’s expansion of foreign investment.
Prime Road Group Co., the company’s subsidiary, will transfer its assets to the new subsidiary, which will have 32 million baht ($1 million) of registered ordinary shares, according to its filing to the Stock Exchange of Thailand last Thursday.
Yet to be named, the new subsidiary will replace Prime Road Group and take over 100 percent of Prime Road Alternative (Cambodia) Co. (PRAC) in the neighboring country, said its statement.
The move is to “restructure the structure of the holding company to support the expansion of foreign investment” and project developments in Cambodia.
Established in 2019, Prime Road Alternative (Cambodia) oversees the company’s solar power plant project in the central province of Kampong Chhnang.
Developed with an investment of 1.5 billion baht, the Kampong Chhnang facility will produce a capacity of 78,000 kilowatts when ready around the fourth quarter of 2021. It will be run by Cambodia's state-owned Electricite Du Cambodge (EDC).
Prime has solar power plants projects in Japan, operated under a joint venture by its wholly owned subsidiary Prime Renewable Energy Co. and Banpu Renewable Energy Energy Co. Prime also has projects in Taiwan.
The Thai group aims to grow its local and overseas renewable business to cater to rising demand for clean energy. It plans to move into other forms of renewable energy such as wind and biomass.
It has set aside 600 to 700 million baht for new investments in 2020, excluding acquisitions, according to a local news report.
The company's business in 2019 continued to grow. It made a revenue of 658 million baht with a profit of 265 million baht.
This year, Prime expects revenue to climb even further. It expects to make 700 million baht from electricity sales committed in agreements and 300 million baht from solar rooftop projects, according to its filing statement. Its revenue in the first quarter was about 187 million baht.