Bangkok: Ratchaburi Electricity Generating Holding PCL (RATCH) announced that the company has subscribed 35 million right issued shares of Electricite Du Laos-Generation Public Company ("EDL-Gen") valued at THB 627.5 million. The transaction has conducted through its wholly-owned subsidiaries namely; RATCH-LAO Services Company Limited (RATCH-LAO) and RH International (Singapore) Corporation Pte. Ltd. (RHIS). Plus the company’s previous subscriptions in 2011, RATCH accumulatively holds 123,947,351 EDL-Gen’s shares representing 10.11% of total EDL-Gen's shares and the subscription value is about THB 2.084 billion in total.
Mr. Noppol Milinthanggoon, Chief Executive Officer of Ratchaburi Electricity Generating Holding PCL, disclosed that the investment reflects our growth strategy where capital market is another investment means apart from conventional project investment. EDL-Gen, a leading IPP of Lao PDR and a subsidiary of Electricite Du Laos (EDL), currently owns 7 projects with total capacity of 387 megawatts. The fund raised from right issue will be used for acquiring another 5 operated power plants with combined capacity of 494 megawatts from EDL. Consequently, this transaction is considered low risk and worthwhile because it strengthens the company’s liquidity and cash flow. In April 2012, the company has realized THB 68 million dividends from EDL-Gen.
"RATCH will receive an immediate income in forms of dividend that EDL-Gen's dividend payout policy is set no less than 50% of its net profit. In the past record, the investment yield was approximately 5%. We foresee EDL-Gen potential growth in the future where it not only has steady incomes generating from electricity production and distribution, but also gains strong support from EDL, a state enterprise as its parent company, which presently has interests in various developing power plant projects over 1,000 megawatts in Lao PDR," added Mr. Noppol.
In January 2011, RATCH-LAO and RHIS subscribed 81.112 million shares of EDL-Gen’s initial public offering (IPO) representing 9.345% of its total shares and then brought additional 5.75 million shares in May.
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For more information, please contact:
Public Relations Department
Wiwan Phayakvichien, Nuannang Changadveja
Tel. 0 2794 9941, 0 2794 9944
Email: wiwanp@ratch.co.th