ZCZC
BCN-20
THAILAND-FRANCE-ENERGY-BUSINESS-ENGIE-GLOW
Thailand approves sale to acquire Engie-owned power producer
BANGKOK, Dec 27, 2018 (BSS/AFP) – Thailand’s energy regulator has approved
state-owned PTT Group’s multibillion-dollar acquisition of a company owned by
French energy giant Engie, after concerns of an electricity monopoly were
resolved in a new proposal.
Engie signed a deal in June with Thai group Global Power Synergy Public
Company (GPSC) — part of PTT — to sell a 69.1 percent stake in Glow, an
independent coal-powered energy producer listed on the Thai Stock Exchange
and owned by Engie.
The sale — expected to be worth an estimated $3 billion — was blocked in
October by Thailand’s Energy Regulatory Commission over worries the
acquisition would create a monopoly within some industrial areas.
But a new proposal submitted by Glow was approved Wednesday after the
company made provisions to address the worries of a monopoly.
“The ERC agrees in principle for GPSC to merge with Glow after GPSC
resubmitted the merging proposal,” ERC spokeswoman Narupat Amornkosit said in
a statement released Wednesday.
“The new proposal has cleared what the ERC was concerned about the
monopoly.”
The new provisions include that Glow will have to sell off one of its
power plants before or “at the same time” of the takeover by GPSC, and for
Glow to allow customers in an industrial zone to change their power purchase
agreements to other providers.
Both parties are also banned from hiring executives from any energy
companies during the transition “to prevent conflict of interest”, said the
statement.
Glow and GPSC could not be reached for comment on Thursday.
The planned sale of Engie’s stake in Glow was part of the French firm’s
strategy to reduce its carbon footprint.
Faced with the upheaval of the European energy sector, Engie had hoped to
shift to renewable energy and energy services, which would have been
regulated — making it less susceptible to market shifts.
The group has a sizeable presence in Southeast Asia via its stake in Glow,
which operates in Thailand and Laos with 800 employees.
BSS/AFP/HR/1320