CKP EXPANDS STAKE IN XAYABURI
Acquisition will make it largest shareholder
CK Power is preparing to acquire an additional 5% share, valued at 1.8 billion baht, in Xayaburi Power Company.
CK Power Plc (CKP) is preparing to acquire an additional 5% share, valued at 1.8 billion baht, in Xayaburi Power Company Ltd (XPCL), which operates a hydropower dam on the Mekong River in Laos, to further invest in renewable energy and generate more longterm revenue.
The purchase, to be made with local company PT Sole Company, will increase CKP’s ownership to 42.5%, making it the largest shareholder in XPCL.
This acquisition will open up an opportunity to generate a long-term stable rate of return in the form of profit sharing and dividends.
“It will enhance CKP’s investment portfolio in renewable energy, which is considered to be its key investment,” said CKP managing director Thanawat Trivisvavet.
CKP board has approved the acquisition, but the company still requires approval from shareholders who will hold the company’s annual meeting on April 22.
Mr Thanawat expects to complete the share purchase deal by the third quarter of this year.
As for 2020, which was the first full year of electricity production by XPCL, the company reported total revenue of 12.07 billion baht and net profit of 968.29 million baht.
The average water flow through the power plant during 2020 was 2,533.5 cubic metres per second and the electricity sales volume was 6,301.4 gigawatt hours (GWh).
The facility is a run-of-river hydropower plant, generating electricity through a barrage which raises the water level slightly without diverting the water from the Mekong and impounding the water like reservoir type hydropower plants.
XPCL has been granted a 31-year concession to generate and distribute electricity.
Its hydropower plant has an installed capacity of 1,285 megawatts (MW) with annual power production of 7,600GWh on average.
The plant sells 1,220MW to the Electricity Generating Authority of Thailand and 60MW to the Electricité du Laos.