Bangkok: Electricity Generating Public Company Limited (EGCO Group) announced the successful closing of a 49% stake sale in Ban Pong Power Plant (BPU) and Khlong Luang Power Plant (KLU) to its strategic international partner, J-Power Holdings (Thailand) Co., Ltd. (J-POWER). This transaction will enhance liquidity and immediately generate revenue of approximately 2,765 million baht. EGCO Group remains the majority shareholder with a 51% stake and will continue to manage both power plants.
According to Thai News Agency, Mr. Thawatchai Samranvanich, President and CEO of EGCO Group, revealed that the closing of this share sale deal is a significant achievement in driving the Asset Recycling strategy under the 'POWER4' framework. It reflects the company's proactive portfolio management capabilities. The acquisition of approximately 2,765 million baht in cash will strengthen financial flexibility and enhance capital allocation, allowing for further investment in new, higher-yield projects, aligning with the trends in clean energy and future technologies.
This transaction involves the sale of a 49% stake in Ban Pong Utility Co., Ltd. (BPU) and Khlong Luang Utility Co., Ltd. (KLU), which operate combined cycle power plant projects with a combined installed capacity of 256 MW and 122 MW, respectively. Both power plants have 25-year long-term power purchase agreements with the Electricity Generating Authority of Thailand (EGAT), as well as contracts to sell electricity and steam to industrial customers in the area. Following the completion of the share transfer and payment on September 10, 2026, EGCO Group retains its 51% majority stake, meaning both BPU and KLU remain subsidiaries of EGCO Group. This allows the company to consistently recognize profit sharing and cash flow into its portfolio, coupled with the strengthening of its expertise with J-POWER, a long-term partner.
'EGCO Group remains committed to transforming and improving the quality of its investment portfolio. Asset recycling is one of the key financial tools that helps the company have a solid capital foundation, ready to support the 30 billion baht investment budget to seize new opportunities from the PDP 2026 plan, Direct PPA projects, the BESS project, as well as expanding its natural gas and renewable energy power plant business base abroad, especially in the United States. We will continue to adhere to strict financial discipline to create value and sustainable returns for shareholders in the long term,' said Mr. Thawatchai.