Siam Gas Power Pte to acquire 30% stake in combined cycle power plant in Myanmar

22-Jul-16

Siam Gas Power Pte (SPW), a subsidiary of Thai-listed Siamgas and Petrochemicals Pcl, is to acquire a 30% stake in a 230-MW combined cycle power plant in Myanmar at total investment of US$48 mln, as reported by dealstreetasia.com. The company will buy stakes from three existing shareholders, MSN International Limited, Asiatech Energy Pte Ltd and Myanmar Lighting (IPP) Co Ltd. “Demand for electricity in Myanmar has drastically risen thanks to the rapid economic growth and infrastructural development. Therefore, this investment is an opportunity not only to expand into other energy business but also create sustainable income and more value to our shareholders,” Jintana Kingkaew, deputy managing director and chief financial officer, said.
The acquisition will be funded through working capital and loans from financial institutions. She said, it would pay US$24 mln to MSN and Asiatech Energy within this month. It expects to pay the other half to Myanmar Lighting in November when SPW is granted permission from authorities in Myanmar to hold shares in the firm. Siamgas and Petrochemicals’ board of directors approved the transaction as the investment would will give the company a stable income and diversify its revenue sources. Its core revenue is generated from liquefied petroleum gas (LPG) trading domestically and abroad. Currently, it has expanded its business in China, Vietnam, Singapore and Malaysia.