B.Grimm Power Successfully Acquires of 163MW Power Plants from Sime Darby Group in Laem Chabang Industrial Estate, Chonburi, Thailand
B.Grimm Power, a leading small power producer (“SPP”) in Thailand, has acquired two power plants with total electricity capacity of 163MW and total steam capacity of 70 tons/hour, located in Laem Chabang Industrial Estate in Chonburi province Thailand, from Sime Darby Energy Pte. Ltd (“SDEPL”), an indirect wholly-owned subsidiary of Sime Darby Berhad (“Sime Darby”). Possessing an ambitious vision to be a world-class energy company, B.Grimm Power considers this acquisition as one of the strategic paths to expand its generating capacity and reach goal of installed capacity above 2,000MW within 2019. B.Grimm Power and SDEPL have entered into a Sale and Purchase Agreement on 16th June 2014 to acquire Sime Darby Power Co., Limited (“SDPC”), Sime Darby LCP Power Co., Limited (“SDLP”) and Sime Darby O&M (Thailand) Co., Limited (“SOMT”).
Mr. Harald Link, Chairman of B.Grimm and B.Grimm Power Limited, shared that the acquisition of the two power plants is well aligned with B.Grimm Power’s strategy to grow its SPP Cogeneration business. Our existing power plants have effectively been operating at full capacity since their respective commercial operating dates. We have developed and constructed gas-fired cogeneration power plants to produce and sell electricity to the Electricity Generating Authority of Thailand (“EGAT”) and sell electricity and steam to industrial users in prime industrial estates in Thailand with the high quality of service stability and the world-class standards of efficiency. Following our tradition of doing business with compassion, we will also continue to support the wellbeing of the communities surrounding the industrial estates in which our power plants are located.
Mrs.Preeyanart Soontornwata, President of B.Grimm Power Limited, said that after taking over these two power plants, B.Grimm Power will enhance its total revenues in 2014 from approximately 19,000 million Baht to 23,200 million Baht and B.Grimm Power’s portfolio will compose of 8 power plants in operation with the total capacity of 896MW. With the extensive experience of B.Grimm Power’s management team over than 30 years in SPP business, Mrs. Preeyanart is strongly confident that B.Grimm Power is the best and most appropriate buyer of the two power plants from Siam Darby Energy, we have ability to realize the anticipated synergies with our existing power plants as we can combine with our expertise, resources, spare parts and tools.
Dato’ lr Jauhari Hamidi, Executive Vice President, Energy & Utilities (Non-China) Division of Sime Darby, explained that the divestment of the two power plants is in line with Sime Darby’s long-term business strategy to consolidate and focus on its core businesses. Sime Darby remains committed to its other existing businesses in Thailand. Sime Darby currently owns Morakot Industries Public Company Limited, Mecomb Thailand and also distributes automobiles such as Ford, Mazda and BMW in Thailand.
Mr. Pornchai Padmindra, Senior Executive Vice President of CIMB Thai Bank, the financial advisor of B.Grimm Power, said that the acquisition has well illustrated a strong footprint of B.Grimm Power to raise capital for business expansion to meet the significant increase in demand of electricity especially when the ASEAN Economic Community is approaching in 2015. He ensures that CIMB will support B.Grimm Power’s expansion plan in the future.
