Thai energy major Gulf Energy, through its wholly-owned subsidiary Gulf International Holding, will be acquiring Vietnamese wind farm developer Dien Xanh Gia Lai Investment Energy (DGI).
DGI is the developer and operator of two onshore wind farm projects in the central highland of Vietnam, which have a total cost of approximately $200 million.
Both projects, with a combined capacity of 100 MW, will generate and sell electricity to Vietnam Electricity for 20 years, Gulf Energy said in a stock exchange filing.
The company added that it plans to begin the construction for both projects within 2021 and start commercial operation by the fourth quarter of 2022.
Gulf Energy’s CEO Sarath Ratanavadi was quoted by local media as saying that the firm was seeking asset acquisitions to tap low-interest rates. He reportedly added that Gulf Energy will make several more renewable energy purchases in Asia and Europe.
The firm has also taken a 50 per cent interest in a Germany-based wind farm with a total investment value of around 548-558 million euros, according to another regulatory filing.
Thai media said Gulf Energy conducted due diligence on the Vietnam-based wind farm deal during the COVID-19 lockdown through video conferencing and flying drones over the project site.
In 2018, Gulf Energy invested around $650 million in a joint venture with Vietnamese diversified group Thanh Thanh Cong to develop real estate and energy businesses, including solar and wind power plants, in the country. In 2019, the Thai firm increased its ownership in the solar power business from 49-90 per cent.
Vietnam has recently attracted a spate of investments from Thai corporations. Prior to the Gulf Energy deal, Super Energy announced to invest about $457 million into four solar projects in Vietnam. Stark Corporation of Thailand also acquired Thinh Phat Cables and Dong Viet Non-Ferrous & Plastic for a combined enterprise value of $240 million earlier this year.