ENGI Engie

   By James Hookway 
 

BANGKOK--Thai energy company PTT PCL (PTT.TH) is buying local power generator Glow Energy PCL (GLOW.TH) from France's Engie SA (ENGI.FR) in a deal that could be worth more than $4 billion, as it attempts to carve out a larger role in rebooting Thailand's industrial base.

A PTT unit, Global Power Synergy, said in a statement Wednesday that it would initially pay the equivalent of $2.98 billion for Engie's 69% stake in Glow Energy before making a tender offer for the remaining shares. Global Power said it intends to finance the acquisition through loans and new stock and bond issues. PTT shares fell initially. At the close of the morning session, its shares were trading down 3.85% at 68.75 baht.

The acquisition will nearly triple Global Power Supply's capacity. More significantly, perhaps, it also provides the PTT unit with a direct hand in powering the ruling Thai junta's plans to reboot the eastern seaboard industrial zone.

In a statement, Engie said the sale means it will no longer operate any coal-fired power plants in the Asia-Pacific region and will reduce its entire global coal-fired generation capacity by 14%.

The area east of Bangkok has long been a focus for developing Thailand's long-term industrial growth and the military government has announced plans to lure a new range of technology-based investors. In April, China's Alibaba Group Holding Ltd. (BABA) became one of the first big investors in the area, with Executive Chairman Jack Ma visiting Bangkok to announce a series of agreements to help redevelop the area.

Thai officials predict the program, which they call Thailand 4.0, will ultimately draw about $45 billion in investments for new roads and rail lines along with the renovation of a Vietnam War-era air base. The project is a major priority for Thailand's military government, which hopes to make a dent in the country's wealth gap before setting a date for elections it has promised to hold next year.

Write to James Hookway at james.hookway@wsj.com

(END) Dow Jones Newswires

June 20, 2018 04:02 ET (08:02 GMT)

Engie (EU:ENGI)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024

Engie (EU:ENGI)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024