GPSC keeps working on Glow deal

GPSC keeps working on Glow deal

Surong Bulakul (second left), chairman of the board at GPSC, and Toemchai Bunnag (second right), GPSC's president and chief executive, are determined to complete the Glow acquisition.
Surong Bulakul (second left), chairman of the board at GPSC, and Toemchai Bunnag (second right), GPSC's president and chief executive, are determined to complete the Glow acquisition.

SET-listed Global Power Synergy Plc (GPSC), a power business arm of PTT Plc, is standing firm on its takeover attempt of SET-listed Glow Energy Plc, saying all processes comply with Thailand's constitution and related laws and the firm will not monopolise electricity in the Map Ta Phut industrial estate.

GPSC has been compelled to defend itself after former finance minister Korn Chatikavanij publicised his concerns about the deal, contending that it would give GPSC a monopoly on power purchase agreements (PPAs) at Map Ta Phut in Rayong.

Chairman Surong Bulakul said GPSC this week will meet all high-ranking executives of 10 petrochemical companies in the industrial estate that have PPAs with Glow in a bid to make clear that the business strategy for them remains unchanged.

"Some of the firms are subsidiaries of Siam Cement Group, Dow Chemical and Linde Group, and GPSC will try to assure them that this acquisition deal will not give GPSC control of the power market in Map Ta Phut," Mr Surong said. "If they want GPSC to make agreements, we are willing to do so."

He said GPSC understands that Glow's customers are concerned with this deal because Glow controls 60% of PPAs in Map Ta Phut and GPSC controls 20% there. Once the transaction is complete, GPSC will own 80% of PPAs.

"But we cannot control the electricity market in Map Ta Phut, and we cannot take advantage of Glow's customers, as they can buy electricity from other power producers such as BLCP Power," Mr Surong said.

In addition, GPSC is ready to explain itself to Mr Korn, who has questioned the deal.

Mr Korn said the acquisition might violate the constitution's Section 75, which prohibits the government from competing with the private sector, except for necessary cases.

GPSC is a subsidiary of national oil and gas firm PTT, which is a state-owned enterprise.

In June, GPSC agreed to purchase 69.11% of shares from French-based Engie Group, the majority shareholder of Glow. The remaining 30.89% of shares are expected to be bought through a tender offer.

The deal is likely to be worth 139 billion baht and completed by November.

Mr Surong said GPSC is waiting for the new commissioners of the Energy Regulatory Commission (ERC), who were appointed last Friday, to consider the deal.

But a former ERC commissioner said the ERC will come to a final conclusion by October.

The ERC has a 90-day time frame to make a decision and can extend by another 15 days if necessary.

Nonetheless, Toemchai Bunnag, GPSC's president and chief executive, said once it completes the acquisition, the company will push ahead in renewable power by conducting a feasibility study of energy storage in order to serve rising demand for electricity in the near future, in particular for the Eastern Economic Corridor.

"GPSC aims to increase the renewable energy portfolio to represent over 10%, both at home and overseas," Mr Toemchai said.

GPSC's total generating capacity stands at 1,940 megawatts for electricity, 1,585 tonnes per hour for stream, 12,000 tonnes for refrigerated water and 2,080 cubic metres per hour for processed water.

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