SET-listed Global Power Synergy Plc (GPSC) is considering de-listing Glow Energy Plc from the stock market after GPSC purchased 95.25% of Glow's shares.
If it decides to de-list Glow, GPSC expects to conclude that plan within a year, said Sukittee Chaiyarak, GPSC's manager for investor relations.
After the Energy Regulatory Commission approved GPSC acquiring all of Glow's shares, Ms Sukittee said GPSC bought 69.11% of Glow from France-based Engie Global Development BV and made a 26.14% tender offer to other shareholders.
"GPSC is trying to complete the tender offer by this year for the remaining 4.75% of Glow's shares in order to comply with the SET's regulations," she said.
"GPSC is proceeding to determine a fair value for the remaining acquired intangible assets and reviewing purchase price allocations. Both will be completed within 12 months, as well as any de-listing programme."
Moreover, GPSC is planning to restructure its business units to enhance its financial status from issuing an equity offering to ensure the right capital structure and financial ratio of the company.
"GPSC's debt-to-equity ratio will rise almost two times," said Ms Sukittee.
Earlier, GPSC received a bridge loan worth 99.5 billion baht for the acquisition deal with Engie.
GPSC has allocated 140 billion baht for the whole share purchase of Glow and it has spent 134.5 billion thus far.
She said GPSC and Glow are planning to consolidate the two companies to retain competitiveness in the power sector.
The huge acquisition has led to better financial performance in the first quarter of 2019, said Ms Sukittee.
GPSC posted revenue of 9.07 billion baht in the first quarter, a 31% rise year-on-year.
Net profit for the period rose by 2% to 922 million baht.
GPSC's net profit in the first quarter suffered from a shutdown for maintenance and repair at its power plant in Sri Racha district.
The power-generating capacity of Glow raised GPSC's capacity from 1,955 megawatts (MW) before the acquisition to 4,726MW as of the first quarter.
After completing the transaction, GPSC will have power-generating capacity of 4,748MW, excluding other future projects.
Moreover, GPSC acquired the Energy Recovery Unit (ERU), which is part of the Clean Fuel Project (CFP) under an investment by Thai Oil Plc.
The ERU can generate 250MW of power and 175 tonnes of steam per hour, using oil from the CFP as its main fuel.
The ERU costs US$757 million (24.1 billion baht). GPSC plans to begin operation in the third quarter of 2023.
Ms Sukittee said GPSC is conducting a feasibility study with PTT Exploration and Production Plc (PTTEP) to develop a gas-fired power plant in Myanmar to supply electricity for local communities.
The gas will come from PTTEP's operation in Myanmar.
The new power plant is expected to add value to the power generation business.