Egco Group Plc announced plans to commit at least 10 billion baht to investments and mergers this year.
Sahust Pratuknukul, the president of Thailand’s first independent power producer, said 3 billion baht of the total will go to ongoing projects and potential joint ventures and acquisitions in renewable energy in Thailand.
The other 7 billion baht will be used for mergers and acquisitions in active assets in Southeast Asia.
“There are several projects such as coal mines and power plants that are now being offered for sale to Egco,” said Mr Sahust. “Talks may be concluded in the first half of this year.”
Egco’s portfolio includes 16 power plants. The company’s concessions for two existing power plants _ one in Rayong province and one in Nakhon Si Thammarat’s Khanom District _ will expire in 2014 and 2016, respectively.
The two together account for at least 40 per cent of Egco’s capacity.
Last year, Egco was awarded three small power producer licences by the Energy Ministry, with a combined capacity of 270 megawatts. It also acquired a 12.5 percent share of a power plant in Laos.
Egco submitted a bid to acquire the assets of South Korea’s GS Power but failed despite being shortlisted.
The company is waiting for a concession extension for the Rayong plant.
In Thailand, only small power producers and renewable energy offer potential for development, said Mr Sahust.
The company reported sales dropped by 11 per cent to 7.66 billion baht last year from 8.61 billion in 2010.
Net profit also dropped by almost 27 per cent to 4.99 billion baht from 6.8 billion in 2010 due mainly to foreign exchange losses of 311 million baht and a 500-million-baht decline in sales at the Rayong and Khanom power plants.
EGCO shares closed yesterday on the SET at 94 baht, up 25 satang, in trade worth 17.1 million baht.
