ACE to Acquire 3 Biomass PPs with a Total Capacity of 26.9MW from UWC Worth ฿851mn
ACE to Acquire 3 Biomass PPs with a Total Capacity of 26.9MW from UWC Worth ฿851mn

ACE to Acquire 3 Biomass PPs with a Total Capacity of 26.9MW from UWC Worth ฿851mn
10 ก.ค. 2563

Absolute Clean Energy Public Company Limited (ACE) announced that the Board of Directors of the Company held on 25th June 2020, has resolved to approve the company and/or its subsidiaries to acquire 3 biomass power plant companies from UA Withya Public Company Limited (UWC) (the Seller), which are comprised of 1) UWC Komen Biomass Company Limited (UKB), operating biomass power plant with installed power generation capacity of 9.9 MW and located at Tambol Baan Pho, Amphur Muang Nakorn Ratchasima, Nakorn Ratchasima Province 2) UWC Amphan Biomass Company Limited (UAB), operating biomass power plant with installed power generation capacity of 9.5 MW and located at Tambol Donmon, Amphur Satuek, Buriram Province, and 3) Satuek Biomass Company Limited (SBM), operating biomass power plant with installed power generation capacity of 7.5 MW and located at Tambol Donmon, Amphur Satuek, Buriram Province (UKB, UAB, and SBM are collectively referred to as the Target Companies). 
 
The acquisition of the Target Companies will be the purchase of all ordinary shares of the Target Companies held by the Seller (equivalent to 99.99 percent of paid-up capital) and the purchase of shareholder’s loan between the Seller as the lender and the Target Companies as the borrowers with the total considerations amount to be paid to the Seller of approximately 851.2 million Baht. The exact considerations amount will be recalculated and adjusted according to the value of cash, interest-bearing debts, and net working capital of the Target Companies at the Closing Date. 
 
The Target Companies have Power Purchase Agreements with the Provincial Electricity Authority (PEA) with total contractual generation capacity of 23.5 MW and have commenced the sale of electricity to PEA since 19th September 2011, 6th February 2008, and 16th June 2011, respectively. The Acquisition of the Target Companies will raise the number of ACE’s total biomass power plants which already achieved the commercial operation date (COD) from 9 projects with total installed power generation capacity of 89.1 MW to 12 projects with total installed power generation capacity of 116.0 MW. 
 
Moreover, after the Target Companies become ACE’s subsidiaries, ACE will be able to leverage its know-how, expertise, experiences, and competitive advantages in biomass power plant business to improve and develop power plant machineries, operation and maintenance, feed stock management, operational cost and expense management, and cost of capital management of the Target Companies to be more efficient and more desirable which will enhance the profitability of the Target Companies and also increase the return on investment of ACE.