EPL selects Banpu Power Limited as preferred bidder for TPI power plant

Bangkok--Nov 20--Aziam Burson-Marsteller Bid of approximately USD 100 million subject to further review of terms and conditions and completion of ongoing negotiations Effective Planners Limited (EPL), Thai Petrochemical Industry Public Company Limited (TPI) and Banpu Power Limited today confirmed that Banpu Power Limited has been selected as the preferred bidder in the sale of TPI’s Rayong-based power plant. The bid values the power plant at approximately USD 100 million, subject to purchase price adjustments which may arise as the detailed terms of the sale are finalised. Part of the purchase price is contingent on obtaining relevant environmental and regulatory approvals for an expansion of the plant. While a binding agreement has not been signed, the parties are now in the process of negotiating the detailed financial and operational terms and conditions of the bid, and aim to conclude the sale as quickly as possible. The sale also requires approval of TPI’s Committee of Creditors and relevant government offices responsible for transferring essential operating permits. “This agreement represents significant step toward achieving a key milestone in TPI’s reorganization process, important as it is in further advancing our efforts to achieve USD 200 million in non-core asset sales this year,” said Mr. Peter Gothard, a senior executive of Effective Planners Limited. “Equally we are very pleased to be able to name a company of Banpu’s stature and track record in the energy sector as our preferred bidder. Their commitment to the long-term well-being of TPI, especially to its employees, and their recognition of the company’s importance in the local economy has been very reassuring. Banpu is an ideal candidate for this transaction.” Importantly, Banpu has agreed in principle to two primary conditions of the bid, related to: (1) employee retention at the existing power plant facility and; (2) a commitment to the expansion of the existing facility, subject to obtaining normal environmental and regulatory approvals. EPL specified a requirement in the sale documents for the successful bidder to commit to the expansion of existing capacity in order to offset current shortfalls in TPI’s current power generating capability. The expanded power plant will improve the reliability of steam and electricity supply to the TPI Group, and in addition makes the sale a more attractive proposal for Banpu Power Limited. In this way, the sale presents a true win-win opportunity for both TPI and Banpu Power Limited. Banpu Power Limited was established in 1997 as a wholly owned investment and business development subsidiary of Banpu Public Company Limited. The company’s investment includes equity stakes held in The Cogeneration Public Company Limited (COCO) in Rayong, Tri Energy Company Limited in Ratchaburi, and other Small Power Producer (SPP) Projects and Independent Power Producer (IPP) Projects. Thai Petrochemical Industry Public Company Limited and its subsidiaries form one of Thailand’s most integrated petrochemical groups, producing a diversified mix of products including petrochemicals, plastics, transportation fuels, lubricants, and other specialty products. Effective Planners Limited is the Plan Administrator of Thai Petrochemical Industry Public Company Limited, and is a wholly-owned subsidiary of Ferrier Hodgson. Ferrier Hodgson operates throughout Australia and specializes in financial restructuring, corporate recovery, insolvency management and related services. Ferrier Hodgson established a Bangkok office in March 1998. Since then, the firm has developed a solid and growing presence in Bangkok with 60 specialists in diverse sectors including banking, petrochemical, telecommunications, hotel, property and transportation. In Thailand, Ferrier Hodgson has been involved in projects acting for creditors (including major bank lenders) and shareholders, with the total financial debts of transactions exceeding USD 12 billion. For Immediate Release For more information, please contact: Aziam Burson-Marsteller James/Waraporn/Barakorn Tel. 0 2252-9871-7 End -NM-

• ข่าวBanpu Power
• ข่าวo:ene
• ข่าวo:fin
• ข่าวo:loc
• ข่าวo:med