Ratch Group Plc, Thailand's largest private power producer by capacity, has acquired two energy firms for US$605 million, part of a move to secure its long-term revenue.
The purchase leaves Ratch with four new energy assets: a renewable power plant, a gas turbine power plant, a combined cycle power plant, and a battery energy storage system, which are located in Thailand, Australia, Vietnam and the Philippines, respectively.
Ratch, through its wholly owned RH International Corporation, signed an agreement to buy 100% of Nexif Energy Holdings BV and 100% of NXF Holdings 2 Co from Denham Capital, a global energy investment firm, according to a letter submitted to the Stock Exchange of Thailand yesterday.
Nexif Energy Holdings is a key developer and investor in power businesses across Asia-Pacific.
Choosri Kietkajornkul, chief executive of Ratch, said the latest investment was in line with the company's plan to buy energy assets that allow it to recognise revenue immediately after share purchases are completed.
She said Ratch and Nexif Energy Holdings have also agreed to set up the Nexif-Ratch JV company to further develop energy projects in the pipeline.
This will lead to revenue stability and long-term benefits from the projects, with electricity generation capacity of 1,500 megawatts.
In 2020, Ratch acquired 49% ownership of Nexif Energy Holdings' Thai power plant project in a deal worth $21 million.
The 92MW gas-fired co-generation facility is located in SSP Industrial Park in Ban Khai district, Rayong.
Earlier on Monday, Ratch said it expected to conclude three deals for new asset purchases in the third quarter of this year, putting it on track to add 700MW of electricity generation capacity to its portfolio in 2022.
