The Board of Director’s meeting of The International Engineering Public Company Limited no. 10/2014 dated on 26 September 2014, has the approved the resolution to acquire a biomass power plant with a total selling capacity of 8 MW. The transaction would done through the way of share acquisition of 3,000,000 common shares of this biomass power plant company called “Kaewlumduan Power Supply Company Limited” (“KPS”), which represents 75% of KPS’s total paid up capital. The Company plans to acquire these shares from 2 existing shareholders namely, “Ms. Charuwan Phusanaphibankhup” (“Seller 1”) in amount of 2,000,000 shares and “Mr. Suthin Jaithum” (“Seller 2”) in amount of 1,000,000 shares at the price of THB 130 per share, totaling to net acquisition price of THB 390million. Post the Transaction, KPS would become a subsidiary of the Company. Effective date is October 30, 2014.
KPS's business is to produce and sell electricity from biomass power plant. Key raw material are wood chip, wood bark, bagasse, and palm wastes. The power plant is located in Sakaew Province with the gross capacity of 9.6 MW and sell electricity at the capacity of 8.0 MW to Provincial Electricity Authority (PEA), approximately 25 years, therefore 23 years and 4 months left. The power plant has received an Adder of 0.3 THB per unit for the next 7 years. KPS has achieved commercial operation date (COD) on April 10,2013.
Additional investment in power plant projects is in line with the Company's business plan, investment strategy and business objectives in entering into renewable energy business.