KPN Group Corporation, a holding company under the Narongdej family, has made its first foray into renewable energy.
The company acquired the entire stake of Renewable Energy Corporation (REC), a majority shareholder of Wind Energy Holding Co (WEH), for an undisclosed amount.
Nop Narongdej, KPN's president, said the acquisition marks an exciting milestone for KPN as WEH is one of the fastest growing renewables companies in Thailand. It is also the only one to have successfully built and operated two commercial-scale wind farms in the country, making it an attractive choice for investment.
WEH also has the largest domestic wind power pipeline, which presents KPN with a rare opportunity to shape the future of the renewable energy industry and positively contribute to Thailand's economic development, he said.
Established as a holding company for WEH, REC currently holds a 59.5% stake in WEH. The company was originally owned by Nopporn Suppipat, who was issued with an arrest warrant by the Thai government on lese majeste charges late last year.
WEH was started in 2009 and is Thailand's largest wind energy company. Its two operating wind farms in Nakhon Ratchasima province have a total capacity of 207 MW. The company is developing six projects that are expected to span some of the most attractive wind-producing areas in Thailand.
The current management team of WEH, with strong support from KPN, has also invested alongside KPN and taken a minority stake in REC. REC will be renamed KPN Energy Co Ltd.
Following this transaction, the founding shareholder of REC and WEH, Mr Nopporn, has no shareholding or involvement in either firm, according to the company's statement.
Emma Collins, chief executive of WEH, said the deal would pave the way for the company to accelerate the development of pipeline projects, expand its high-quality asset base and pursue a longer-term strategy aggressively.
"I am looking forward to working with KPN given their terrific track record of developing and growing companies in Thailand," said Ms Collins.
With a successful track record dating back to 1979, KPN is one of Thailand's pre-eminent investors. The company's primary focus is on growing businesses, while also innovating and breaking new ground in different industries through investments and in-house developments.
The acquisition of REC provides a platform for KPN to establish a strong foothold in the renewable energy sector and in the longer term help Thailand reach its stated goals of energy diversification and renewable energy penetration.