Thailand: PDI to diversify into renewable energy

Thailand: PDI to diversify into renewable energy

SET-listed zinc miner Padaeng Industry Plc (PDI) will continue its strategy
of diversifying into the renewable energy business by investing 1.3 billion
baht to acquire an additional 30 megawatts of solar farm capacity in
Thailand.

The company informed the Stock Exchange of Thailand that a subsidiary, PDI
Energy, completed the purchase of six operating solar farms in Thailand with
a total capacity of 30MW from Singapore-based Armstrong Asset Management.

"On Aug 31, 2017, the company signed a share purchase agreement acquiring
100% of the shares in Symbior Elements Pte Ltd for a total value of 1.3
billion baht," PDI said.

After the successful acquisition, PDI will operate solar farms in Asia with
a total capacity of 50MW.

The acquisition of these solar farms was fully financed through PDI's own
available cash, generated during the ceasing of its historical zinc
operations.

"PDI carefully considered this investment during the past months and
evaluated and mitigated all risks," PDI said.

"The company's board of directors is convinced that this significant
acquisition contributes largely to the company's growth strategy in green
business and will balance future revenues over different sustainable
businesses."

The acquisition will generate immediate revenues, from the six solar farms
holding a 25-year power purchasing agreement with the Provincial Electricity
Authority.

The first solar farm started commercial operations in June 2013 and another
four solar farms started in December 2015, while the last one started in
April this year.

PDI's energy team plans to further improve operational performance, similar
to the previous acquisition of PDI Mae Ramat Solar in December 2016.

The acquisition of PDI Mae Ramat Solar was also done via subsidiary PDI
Energy, which purchased 99.99% of shares in IEC Mae Ramat Co Ltd.

The solar farm in Tak's Mae Ramat district commenced operations in 2013 and
has been selling power to the Provincial Electricity Authority under a
25-year power purchasing agreement.

The newly acquired solar farm is due to start generating revenue for PDI
from 2017.

PDI shares closed yesterday on the Stock Exchange of Thailand at 23.30 baht,
up 40 satang, in trade worth 84.8 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1316763/pdi-to-diversify-into-renew
able-energy

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com