Thailand: ACC closes $8.82m solar energy group acquisition

Thailand’s SET-listed Advanced Connection Corporation (ACC) has sealed the deal to acquire the entire shares in Saraburi Project Group Companies from the existing shareholders with total investment of 320 million baht ($8.82 million).ACC’s managing director Yuttana Taepangthong told DEALSTREETASIA that the acquisition was in line with company’s plan to fully diversify into renewable energy business after it had earlier acquired a 75 per cent stake of Four Us Technology, a solar panel manufacturer.Saraburi Project Group comprises 10 companies, all of which are engaged in the production and distribution of electricity from solar farm with a combined capacity of 5.5 megawatts.

“Saraburi has generated the revenue from the electricity distribution since three years ago. Therefore, this acquisition will recognise the revenue immediately. We expect to gain an annual revenue of approximately 98 million baht and an annual profit of 33 million baht from its solar farm,” the managing director said.The company’s Board of Directors has approved an increase of its registered capital from currently 300 million baht to 375 million baht by issuing 300 new ordinary shares at the par value of 0.25 baht apiece.It also approved the issuance of warrants to purchase ordinary shares of ACC-W1, offered without a charge of payment to the existing shareholders according the shareholding proportion, totaling not more than 300 million units. The ratio is 4 existing ordinary shares to 1 unit of warrants at the exercise price of 1.25 baht per share, he cited.

“The capital increase will make our financial structure healthier, and grant us more opportunities for business expansion. Apart from ceiling fan manufacturing, our original business, we will focus on investing in renewable energy and property development businesses,” he added.It will propose all these agendas to the shareholders’ meeting in the end of February.

Source:dealstreetasia