PDI to diversify into renewable energy
SET-listed zinc miner Padaeng Industry Plc (PDI) will continue its strategy of diversifying into the renewable energy business by investing 1.3 billion baht to acquire an additional 30 megawatts of solar farm capacity in Thailand.
The company i nformed the Stock Exchange of Thailand that a subsidiary, PDI Energy, completed the purchase of six operating solar farms in Thailand with a total capacity of 30MW from Singaporebased Armstrong Asset Management.
“On Aug 31, 2017, the company signed a share purchase agreement acquiring 100% of the shares in Symbior Elements Pte Ltd for a total value of 1.3 billion baht,” PDI said.
After the successful acquisition, PDI will operate solar farms in Asia with a total capacity of 50MW.
The acquisition of these solar farms was fully financed through PDI’s own available cash, generated during the ceasing of its historical zinc operations.
“PDI carefully considered this investment during the past months and evaluated and mitigated all risks,” PDI said.
“The company’s board of directors is convinced that this significant acquisition contributes largely to the company’s growth strategy in green business and will balance future revenues over different sustainable businesses.”
The acquisition will generate immediate revenues, from the six solar farms holding a 25-year power purchasing agreement with the Provincial Electricity Authority.
The first solar farm started commercial operations in June 2013 and another four solar farms started in December 2015, while the last one started in April this year.
PDI’s energy team plans to further improve operational performance, similar to the previous acquisition of PDI Mae Ramat Solar in December 2016.
The acquisition of PDI Mae Ramat Solar was also done via subsidiary PDI Energy, which purchased 99.99% of shares in IEC Mae Ramat Co Ltd.
The solar farm in Tak’s Mae Ramat district commenced operations in 2013 and has been selling power to the Provincial Electricity Authority under a 25-year power purchasing agreement.
The newly acquired solar farm is due to start generating revenue for PDI from 2017.
PDI shares closed yesterday on the Stock Exchange of Thailand at 23.30 baht, up 40 satang, in trade worth 84.8 million baht.