Thailand: TPIPP to list, plans 3 new generating plants

Thailand: TPIPP to list, plans 3 new generating plants

TPI POLENE (TPIPL) will bring its subsidiary TPI Polene Power (TPIPP) - the
country's biggest power generator using refuse-derived fuel - to list on the
Stock Exchange of Thailand next month, in order to raise funds to support
investment in three new power plants, as well as the repayment of debt.

TPIPP will issue up to 2.5 billion new ordinary shares via an initial public
offering, with the IPO price due to be announced early next month, Prachai
Leophairatana, chief executive officer of TPIPL, said yesterday. The number
of newly issued shares will not exceed 29.8 per cent of the enlarged paid-up
capital of Bt8.4 billion.

Some 2.375 billion shares will be offered to the public, and another 125
million will be sold to TPIPL shareholders under pre-emptive subscription
rights.

Prachai said the bulk of the funds raised from the IPO would be used to
repay debt to TPIPL, which has financed debt to the tune of Bt4 billion at
the subsidiary company, while the remainder would finance three new
power-plant projects requiring total investment of around Bt12 billion to
Bt14 billion.

After repaying the debt, the company's debt-to-equity ratio will be zero,
from 0.55 currently.

The three planned facilities are a 70-megawatt power plant using
refuse-derived fuel, plus two coal-fired power plants - one generating 150MW
of electricity and the other producing 70MW.

The three plants will increase TPIPP's commercial operational capacity to
440MW, as its four existing plants generate 150MW combined, said Pakorn
Leophairatana, president of TPIPP. The first 70MW plant is expected to be
completed and ready for commercial operation in the first quarter of next
year.

Once all three new plants are operational, TPIPP will generate 260TW for
TPIPL's cement plants in Saraburi province and the remaining 180MW will be
supplied to the Electricity Generating Authority of Thailand, Pakorn said.

CIMB Thai Bank, Maybank Kim Eng Secirities (Thailand) and Tisco Bank are
financial advisers to TPIPP for the listing of its subsidiary.

Prachai said TPIPL was currently also interested in investing in solar farms
and wind energy in the neighbouring markets of Cambodia, Laos, Myanmar and
Vietnam, with details expected to be known by the end of next year.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com