SET-listed Bangkok Aviation Fuel Services (BAFS) has acquired two more solar power plants in Japan from Padaeng Industry Plc (PDI) in a deal worth ¥2.5 billion (760 million baht) in a bid to generate income from clean energy and get through the impact of Covid-19.
The acquisition aims to offset a drop in revenue of the company's core business, caused by strict travel restrictions imposed to contain the spread of the highly contagious virus.
The BAFS board approved the share purchase, which will be made through BAFS Clean Energy Corporation Company (BC), a wholly owned subsidiary of BAFS.
The new investment is expected to be completed by the fourth quarter.
Prakobkiat Ninnad, president of BAFS, said the newly acquired power plants, with capacity of 13 megawatts, have already started operation.
This investment increases BC's renewable energy capacity and allows the company to recognise revenue from the first year of the acquisition, he said.
The move is in line with BAFS's strategy to expand investment in renewable energy businesses, both domestically and internationally, to strengthen the financial stability of firms under its umbrella.
The investment will also meet corporate governance objectives with a focus on operating a sustainable business in response to the government's clean energy policy. BC now runs seven solar power plants, with capacity of 36.4MW.
The latest investment will strengthen the firm's clean energy position, with nine solar power plants in total, with a combined capacity of 49.4MW. Mr Prakobkiat said the seven other solar plants, also acquired from PDI, generated revenue for BAFS of 93 million baht, above its estimate of 83 million.
BAFS also set up wholly owned Bafs Innovation Development Co to provide IT and software services under its business diversification plan.