LONDON (Alliance News) - Investment Company All Asia Asset Capital Ltd Tuesday said it has agreed to acquire a further 4.5% stake in Andaman Power and Utility Company Ltd (APU), a power generation group focused on Myanmar and Thailand, through an agreement with Chakris Kajkumjohndej, who is selling the shares, just as APU struck deals with the government of Myanmar.
The purchase, which will give All Asia Asset Capital a total 7.0% stake in APU, is being made through the issuance of 11.0 million new shares and USD550,000 in cash. This will give Kajkumjohndej a 5.24% stake in All Asia Asset Capital.
The deal is conditional on APU signing an agreement for the development of a 200 megawatt combined cycle power plant. According to All Asia Asset Capital, APU is in the final stage of signing an agreement with the government of Myanmar for the development of the plant, which is expected to be fully operational by the first quarter of 2017. All Asia Asset Capital said the agreement is expected to be signed by the third week of July.
In addition, All Asia Asset Capital said that APU has signed a memorandum of understanding with Myanmar to provide electricity and utilities to Dawei, which is the capital city of the Tanintharyi region, and its surrounding cities. An agreement has also been agreed with the government for a 20 megawatt gas engine rental project. All Asia Asset Capital said that APU on Monday signed a binding deal with Aggreko PLC as the provider for the project.
At the end of 2013, APU had THB73.98 million in assets and made a THB48.59 million loss after tax.
"We are delighted that APU has managed to close these deals that will be transformative for the Myanmese people and economy. I expect APU and its partners in Myanmar and the UK to genuinely help transform Myanmar for the benefit of its people and provide value to those who are willing to invest in Myanmar during this transformational time," Chief Executive Hartati Kurniawan said in a statement.
"Myanmar is one of the few almost untapped markets with multiple investment opportunities, and I am confident that this project will be instrumental to facilitating further investment in the country," the chief executive added.
All Asia Asset Capital shares were Tuesday quoted up 4.8% at 22.00 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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