Japan’s Kyushu Electric buys 6% stake in Thai power producer

16, May. 2019

BANGKOK, NNA - Kyushu Electric Power Co. based in southwestern Japan has effectively bought a 6 percent stake in Electricity Generating Public Co. (EGCO), one of the largest independent power producers in Thailand.

Kyushu said Tuesday it had acquired a 25 percent interest in TEPDIA Generating B.V., which owns about 25 percent of EGCO, from Japanese trading house Mitsubishi Corp. This gives the Japanese utility the equivalent of a 6 percent share in EGCO.

Kyushu Electric declined to disclose the purchasing price but said it was the biggest acquisition it had made outside Japan.

EGCO has 27 power plants in operation amounting to equity ownership of 5,154 megawatts of power across six countries, including Thailand.

With the purchase, Kyushu Electric's equity ownership in overseas electricity generation reaches 2,300 megawatts.

In the medium-term, Kyushu aims to expand its overseas equity ownership to 5,000 megawatts by 2030, mainly by boosting its presence in Asia, where it expects electricity demand to increase.

EGCO was established in 1992 by the Electricity Generating Authority of Thailand and is listed on the Stock Exchange of Thailand. It had revenue of 203.8 billion yen ($1.86 billion) last year.

Mitsubishi participated in the management of EGCO in 2006, as did Tokyo Electric Power Co. in 2011.