Non-oil energy conglomerate Banpu Plc paid US$14.5 million for a stake in Solar Esco Joint Stock Co, a Vietnam-based rooftop solar panel provider, as it continues to expand its renewable energy business.
BRE Singapore Pte, a wholly owned subsidiary of Banpu Next Co, signed an agreement to buy a 49.04% share in the Vietnamese company, worth around 466 million baht.
Banpu Next is the energy technology arm of Banpu Plc.
The transaction, scheduled to be completed in the second quarter of this year, is part of Banpu's plan to increase the Ebitda (earnings before interest, taxes, depreciation and amortisation) contribution from green energy and energy tech businesses to more than 50% of the total by 2025.
"This investment marks an important step in expanding our green energy portfolio to energy tech business in Vietnam, particularly the integrated rooftop solar platform," said Somruedee Chaimongkol, chief executive of Banpu Plc.
The past two years Banpu has invested in clean energy projects in Vietnam, with a total electricity generation capacity of 218 megawatts. In January, Banpu reported to the Stock Exchange of Thailand it is in the process of buying two new solar power facilities worth $26.7 million (around 883 million baht) in Vietnam.
The new investments pave the way for Banpu to achieve total power generation capacity of 6,100MW by 2025.
"Apart from the clear benefit of immediate cash flow, the investment leads to a synergistic partnership between Banpu and Solar Esco Joint Stock," said Mrs Somruedee.
Solar Esco Joint Stock has for 15 years offered a complete rooftop solar platform, covering planning and development as well as providing engineering, procurement, construction, and operations and maintenance services.
"Continuous investment in our overseas business aligns with our new S-curve strategy, strengthening Banpu Next's business ecosystem and investing in new energy tech firms," she said.