BCPG Plc, the power generation arm of energy conglomerate Bangchak Group, has decided to sell all nine of its solar farms in Japan in a move to adjust a long-term renewable energy investment.
The assets consist of equity valued at 6.93 billion baht and net debt amounting to 3.44 billion baht.
The company has signed an asset purchase agreement with Obton, a Danish renewable energy investment firm, and BCPG expects to complete the transaction by the first quarter of next year.
"The proceeds realised from our exit [from Japan] are to be reinvested in other renewable projects to enhance our rapid expansion," said Niwat Adirek, president and chief executive of BCPG.
The nine solar farms have a total installed capacity of 117 megawatts, with 104MW from farms that have already started commercial operation and 13MW from facilities that are currently under development.
Mr Niwat said this divestment transaction is in line with BCPG's long-term strategy to develop and operate world-class quality renewable power plants and exit at the right time to realise the full value of the assets and recycle the capital.
BCPG made its first investment in Japan, with a capacity of 13MW, in 2016.
Its divestment announcement received interest from a wide range of investors worldwide as the assets are located in strategic locations and have exceptional operating performance, producing a stable cash flow to the investor.
The facilities also play a key role in lowering the country's greenhouse gas emissions.
"Our solar projects in Japan have drawn attention from investors worldwide, assuring that our projects and operational platform meet world-class standards in terms of business performance, revenue stream and environmental aspects, including talent acquisition and development," said Mr Niwat.
BCPG is interested in expanding its investments overseas.
The company earlier announced it aims to increase revenue from electricity generation in the US by acquiring an additional 8.7% share in Carroll County Energy Llc, which operates a combined-cycle power plant in Ohio.