Thai RATCH shakes hands with Geleximco to invest in An Binh energy fund
Thai RATCH shakes hands with Geleximco to invest in An Binh energy fund
According to the agreement, RATCH will acquire 49 per cent in ABEIF at a deal value of $78.5 million, while Vietnamese conglomerate Geleximco will hold the remaining stakes. RATCH is a major power producer in Thailand and is 45 per cent owned by the Electricity Generating Authority of Thailand.
RATCH Group and Geleximco will team up in the Vietnamese energy sector
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Kijja Sripathangkura, RATCH Group’s CEO expressed his belief that Geleximco would be a strong and trusted partner that could help the Thai giant increase its footprint in Vietnam – a lucrative and promising investment spot thanks to its stable economy and upbeat GDP growth.
According to RATCH's official website, ABEIF will potentially drive the company’s investment in energy and infrastructure, underpinning its growth. ABEIF’s portfolio currently includes conventional and renewable power projects with a total combined capacity of 2,620MW.
“RATCH is very pleased with this deal," Kijja said, referring to the buy into ABEIF. "It marks the beginning of pooling our potential and strength with Geleximco Group, our new partner, to develop business together in Vietnam and pursuing our aligning goals of creating energy security, accelerating economic growth, and enhancing the quality of people’s living.”
“The Vietnamese government aims to reach a power generation capacity of 130GW by 2030, a tremendous increase against the present 54GW. The company is certainly confident that the Vietnamese economy will keep growing,” he added.
The ABEIF investment portfolio mainly focuses on energy, infrastructure, and real estate businesses and its current assets include:
· The operational 620MW Thang Long power plant fired by anthracite coal, located in Northern Vietnam,
· A 650MW coal-fired power plant in Northern Vietnam, currently under construction,
· An 1,200MW coal-fired power plant in Central Vietnam, currently in early-stage development,
· An 150MW hydroelectric power plant in Northern Vietnam, currently in early-stage development.
Previously, RATCH signalled that it would invest $45 million to indirectly acquire 51 per cent stake in the 29,700kW Thanh Phong onshore wind power plant in the south of Ho Chi Minh City.
The wind power farm, which is scheduled to begin commercial operation in September 2021, will supply electricity to state-backed Electricity of Vietnam for 20 years, according to RATCH's filing with the local bourse on May 25.
