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Banpu invests USD 56m in solar co Sunseap for 25.7% stake

Photo by: Sunseap (www.sunseap.com).

Sep 20 (Renewables Now) - Thai coal miner and energy provider Banpu PCL (BKK:BANPU) has invested SGD 75 million (USD 55.7m/EUR 76.4m) in Sunseap Group Pte Ltd, taking a 25.7% stake in the Singaporean clean energy provider.

The capital injection was made through Banpu's recently-established unit Banpu Infinergy Co Ltd and is seen to lift Sunseap’s equity value to SGD 300 million, the solar-focused company said on Tuesday. In a separate statement on the Thailand bourse, Banpu said the acquisition will make it Sunseap's largest shareholder.

Sunseap intends to use the funds for the development of solar photovoltaic (PV) projects in Asia. The company currently operates 93.3 MW of solar assets and is set to increase the capacity to 182.9 MW through secured schemes. It has projects in Cambodia, India, Thailand, Vietnam, Malaysia and Australia and has signed 350 MW of distributed solar contracts in the region.

“The two companies plan to leverage on each other’s networks and domain expertise to grow in the alternative energy market in Asia and beyond,” Sunseap said in a press release. According to Lawrence Wu, co-founder and director of Sunseap, the partnership presents “significant synergies” that will allow Sunseap to tap Banpu’s resources and networks in the region.

US bank Goldman Sachs Group (NYSE:GS) and Singaporean renewables investor TRIREC are also among Sunseap’s investors. Last month, Royal Dutch Shell (AMS:RDSA) made an undisclosed investment in the Singapore-based clean energy provider.

For Banpu, the investment represents a step towards its overseas expansion after it entered the downstream PV market with the establishment of the new subsidiary. Banpu Infinergy in August announced plans to build 300 MW of solar parks in the next five years. The transaction with Sunseap will bring its generating capacity to 47 MW.

(SGD 1.0 = 0.743/0.619)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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