Thai oil and gas conglomerate PTT Plc has agreed to take over a 69.11 per cent stake in power generating company Glow Energy Plc from France-based Engie for more than 100 billion baht ($3 billion), according to a filing on stock exchange and local media reports.
The proposed acquisition will be done via PTT’s power and utilities arm Global Power Synergy (GPSC). The development of the deal was first reported by Bangkok Post last Friday.
A filing at the stock exchange dated June 18 said PTT’s board of directors have given the green light to go ahead with the proposed acquisition via GPSC.
“Nonetheless, PTT understands that GPSC is now in the stage of negotiation of the share sale and purchase agreement with GLOW’s major shareholders, the process of which is not, at present, concluded. Also, GPSC is in the process of seeking approval from its board of directors to enter into the proposed transaction,” said PTT.
In a stock exchange filing issued last Friday, Glow said that it is re-evaluating its strategic position in the Thai market. “As far as Glow is aware, no decision has been made.”
The deal will be one of PTT’s largest single investment done by the conglomerate, said local media.
Glow is Thailand’s largest private electricity generator with total capacity of 3,207 megawatts of electricity and 1,206 tons per hour of steam, supplying power for industrial estates in Thailand and neighbour countries.
While GPSC was set up by state-owned PTT in 2013 which it was subsequently listed on Stock Exchange Thailand as PTT’s fifth core business.