Thai Stock Exchange cautions Superblock shareholders over acquisition of solar companies

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

The Stock Exchange of Thailand (SET) has warned shareholders of Thai utility Superblock about possible issues with a US$407 million investment in five solar energy companies, after independent financial advisor Sage Capital expressed concern about the acquisitions.

Earlier this month, Super Solar Energy Group, a wholly-owned subsidiary of Superblock, announced in a filing on the SET that it would acquire five companies with a combined capacity of 290MW of solar projects for THB14.45 billion (US$407.3 billion).

However, Sage Capital has cited issues with the acquisition of two out of the five companies, namely Energy Serve (ESERVE) and Power Technology International (PTI). Sage said their fair value is lower than the acquisition price.

Moreover, three solar projects from ESERVE have not yet been awarded PPAs from the Provincial Electricity Authority (PEA).

A new filing on the SET, which cited Sage, said: “There is still risk from these projects failing to obtain the PPA.”

Sage was also reported to hold the following opinion: “The condition for the five transactions requiring the company to make a huge payment in advance to the counterparties in each transaction is inappropriate and not consistent with the usual condition for sale and purchase agreements in general, which is considered unfair to the company and leads to an opportunity cost on the funds prepaid by the company to the counterparties.”

As a consequence, SET recommended Superblock’s shareholders to “carefully study” the Sage Capital report and attend an extraordinary meeting to be held on 30 October in Bangkok in order to vote on the deal.

Sage Capital did list some pros of entering into the five transactions, including strengthening income stability, boosting profits, increasing dividend payment ability of the Company and helping to create economies of scale.

Nevertheless it added the company would bear higher debt and interest burden from all the transactions. It also cited potential issues with delayed project completion, the subsequent loss of PPAs, followed by the loss of funds invested in land acquisition.

The SET filing concluded: “Considering all 5 transactions, IFA have an opinion that shareholders should not approve the investment in PTI and ESERVE.”

The Board of Directors and Audit Committee, however, still considers the transaction to be “reasonable” for the business with its strengthening of operations and revenue generation and therefore recommends that the shareholders approve the transaction.

PV Tech's publisher Solar Media is hosting the Solar & Off-Grid Renewables Southeast Asia event in Bangkok, Thailand on 25, 26 November.

19 August 2021
The utility-scale PV market is poised for exponential growth and yet the industry still has many fundamental opportunities to improve on standards and best practice. Tracker shade loss has been one of those topics that deserve more attention, but has been typically handled by derate factors rather than trying to accurately forecast the loss over the life of the system. Join Nextracker’s subject matter experts, Aron Dobos and Neelesh Umachandran, and Rounak Kharait, director of solar energy assessments at DNV, for a webinar about why shade modeling matters and recommendations on what the solar industry should do about it.
25 August 2021
The Intersolar Summit Brasil Nordeste takes place in Fortaleza, Brazil. It addresses leading local and international experts on solar power and renewable energy in the region. The Summit’s mission is to provide in-depth education, enable high-quality networking opportunities, expand the use of PV technologies at regional and national level and strengthen the local PV industry. The Intersolar Summit Brasil Nordeste is organized by Intersolar South America - Latin America’s largest exhibition and conference for the solar industry: Solar Promotion International GmbH, Pforzheim, Freiburg Management and Marketing International GmbH (FMMI) and Aranda Eventos & Congressos Ltda, São Paulo as co-organizer.
25 August 2021
Join us to hear directly from the CTOs and heads-of-research from the top-20 cell/wafer producers to the PV industry today. The event will focus on predicting the key metrics underpinning the next big shift to n-type with answers to the key questions: When will the transition to n-type happen? Which companies will be first to 10 GW capacity and production? Who will be the key equipment suppliers for the new production lines? Which n-type process flow/architecture will emerge as the front-runner? What will polysilicon purity and wafer thickness levels look like for optimized n-type manufacturing? What will the upstream poly/wafer supply-chain look like in 5 years from now?
26 August 2021
In this webinar, JA Solar will present its product portfolio based on the latest technologies to improve your PV projects, ensuring maximum reliability and performance. During the webinar we will receive insight from JA Solar about its solar technology roadmap and how the manufacturer is providing customers with innovative solutions to suit their needs, while we will also analyse how to determine the best product solution for each solar project.
6 September 2021
The 38th European Photovoltaic Solar Energy Conference and Exhibition will be held online from 6 - 10 September 2021, allowing PV experts from all around the globe to participate with just one click! The EU PVSEC is the world's leading forum for PV Research and Development and the biggest Conference on PV Solar Energy worldwide. That is why PV experts from all around the globe are keen on gathering together each year to be part of this specialist’s event, to present and discuss the latest developments in Photovoltaics, to network and to conduct business.
7 September 2021
Intersolar Mexico sits at the cross-section of photovoltaics, solar heating & cooling technologies, and energy storage. The event serves as the industry’s go-to source for invaluable technology trends and premier B2B contacts in the promising Mexican solar market. In its second edition from September 7–9, 2021 Intersolar Mexico together with the co-located The GREEN Expo® and Aquatech Mexico will move to a new venue – Centro Citibanamex.

Read Next

August 4, 2021
Danish investment firm Copenhagen Infrastructure Partners has signed an agreement with Amp Energy to enable the addition of 1.7GWp of renewables projects in India.
August 4, 2021
Walmart will buy renewable energy credits from 23 community solar projects across New York State through an agreement with developer Nexamp.
August 4, 2021
Israeli independent power producer Enlight Renewable Energy has secured a deal to acquire a portfolio of solar projects in Spain with a combined capacity of 490MWdc.
August 4, 2021
SunPower was boosted by rising homeowner demand for its PV and storage solutions during Q2 as the US solar installer added 13,000 new customers, bringing its total residential install base to more than 376,000.
August 4, 2021
The Australian Energy Market Operator (AEMO) has published a series of planning and forecasting publications under the 2021 Inputs, Assumptions and Scenarios (IASR) report that present five different visions of Australia's future
PV Tech Premium
August 4, 2021
Shipping costs have increased substantially since COVID-19, with knock-on impacts on the solar industry. PV Tech spoke to industry insiders about what its means for the solar industry and when pressures might ease

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021