Egco of Thailand buys out partner in Quezon Power
The investment committee of the Electricity Generating Public Company Ltd. of Thailand approved the purchase of a 2-percent indirect stake of local partner PMR Holdings Corp. in Quezon Power Philippines Ltd. for $15.07 million.
Egco informed the Stock Exchange of Thailand that it signed the sale and purchase agreement with PMR on Sept. 30, 2015 and completed the purchase on Oct. 1, 2015.
“Following the completion of the purchase, Egco holds 100-percent indirect ownership in QPL,” it said.
Quezon Power owns and operates a 503-megawatt coal-fired power plant in Quezon.
Egco took control of Quezon Power after acquiring an additional 45.875 percent from Intergen (jointly owned by the Ontario Teachers’ Pension Plan and China Huaneng Group) for $375 million in 2012, thereby bringing its ownership to 98 percent.
The remaining 2 percent is held by PMR, a Philippine limited partnership formed by PMR Holdings, which has significant expertise in the Philippine power industry and an extensive knowledge of the country’s regulatory framework. PMR is said to be led by the group of Dan Chambers which is now with GN Power.
The Quezon Power project, which commenced commercial operations in May 2000, provides stable and reliable electricity to the Luzon grid under a 25-year power sales agreement with Manila Electric Co.
Egco also owns a 40.95-percent interest in the Masinloc power plant in Zambales with total contracted capacity of 589 megawatts.
It owns 49 percent of the 455-megawatt San Buenaventura super-critical coal plant in Quezon which is slated for construction this year. Meralco PowerGen Corp. owns the remaining 51 percent of the San Buenaventura power plant.
Sahust Pratuknukul, Egco president earlier, said that from 2015 to 2019, the company’s business direction was to continually grow through the construction and development of new projects and expanding its its overseas electricity portfolio.
“Presently, Egco Group is studying the potential investment opportunities both in Thailand and Asean region. In Asean countries, we will co-invest with local business partners to expand the existing power plants and acquire commercially operating assets with focus on Lao PDR, the Philippines and Indonesia where the Company has strong presence,” the official said.
Egco Group runs 23 operating power plants with total equity contracted capacity of 3,767 MW in five countries in Asia Pacific.