CH Karnchang : Joint Investment and Acquisition of Shares in Luang Prabang Power Company Limited

11/11/2020 | 08:31pm EST

	(Translation)
No.	CK-20-0000-PO-L-0049
	November 11, 2020
Re:	Joint Investment and Acquisition of Shares in Luang Prabang Power Company Limited
Attn.:	President of the Stock Exchange of Thailand

CH. Karnchang Public Company Limited (the "Company") would like to notify the Stock Exchange of Thailand that the Executive Board's Meeting No. 11/2020 on November 11, 2020 resolved to grant approval for the Company to make a joint-investment with other persons and/or legal entities which have no connection with the Company, by way of acquisition of 415,000 ordinary shares in Luang Prabang Power Company Limited ("LPCL") from PT Sole Co., Ltd. ("PTS") [a business alliance in co-development of the hydroelectric power project in the Lao People's Democratic Republic ("Lao PDR")] at its par value of USD 0.24 per share or representing 10 percent of LPCL's registered capital, in the total amount of approximately USD 99,600 or equivalent to Baht 3,137,400 (at the exchange rate of Baht 31.50 per USD) for feasibility study and development of the Luang Prabang Hydroelectric Power Project ("LPHPP") in Luang Prabang Province, the Lao PDR. In this regard, the Company is obligated to pay for the capital increase shares in proportion to its shareholding in the future when the study and development of the LPHPP is completed or clear for investment. The essence of the project information is as follows:

General Information of the LPHPP

Company Name:	Luang Prabang Power Company Limited
Business Category:	Legal entity in the category of limited company,
	registered under the law of the Lao PDR
Business Nature:	Study, development, construction, production and
	distribution of electricity from the LPHPP, a large-
	scale run-of-river hydroelectric power plant in the
	Mekong River, the Lao PDR, by raising the water level
	without water diversion from the Mekong River and
	without water impounding like other reservoir dams,
	with the installed capacity of approximately 1,460
	MW, with a yearly average production capacity of
	approximately 6,854 GWh, for the concession period
	1

	of approximately 32 years from the Commercial
	Operation Date.
	Currently, the LPHPP is in process of study for project
	development. Initially, the feasibility study of the
	LPHPP in terms of technique, finance, and related
	environmental and social impacts has been already
	completed and passed through the Procedures for
	Notification, Prior Consultation and Agreement
	("PNPCA"). Presently, negotiations on the project's
	main agreements, i.e., the Power Purchase Agreement,
	the Concession Agreement, the Credit Facilities
	Agreement, and the Construction Agreement, have
	just begun. It is expected to gradually reach the full
	completion by mid-2021.
Power Plant Location:	Located in the middle of the Mekong River, at km
	2036, Luang Prabang Province (covering a distance of
	approximately 25 kilometers from Luang Prabang to
	the project location at Ban Houaygno).

Registered Capital and Shareholding Structure of LPCL

LPCL's registered capital is currently USD 1,000,000 (USD One Million) or equivalent to Baht 31,500,000 (Baht Thirty-One Million and Five Hundred Thousand Only) (at the exchange rate of USD 1 per Baht 31.50), with a total of 4,150,000 ordinary shares at the par value of USD 0.24 per share. As at October 31, 2020, there was a fully paid-up capital in the amount of USD 1,000,000 (USD One Million).

Pre- and Post-Transaction Shareholding Structure

Shareholders		Pre-Transaction		Post-Transaction
		Share			%	Share	%

		Amount				Amount
PT Sole Co., Ltd.	2,573,000		62.00		1,577,000	38.00
Petro Vietnam Power Corporation	1,577,000		38.00		415,000	10.00
CK Power Public Company Limited	-	-	1,743,000		42.00
CH. Karnchang Public Company Limited	-	-	415,000		10.00
Total	4,150,000		100.00		4,150,000	100.00
	2

Such transaction neither falls within the scope of connected transaction of the Company nor is a connected transaction under the Notification of the Capital Market Supervisory Board No. ThorChor.21/2551 (2008), and upon calculation of the size of transaction on acquisition of assets, it is not required to report on information memorandum under the Notification of the Capital Market Supervisory Board No. ThorChor.20/2551 (2008).

In this regard, the aforesaid project is in the process of study for further development. The Company will keep you updated once again if there is any further progress.

Please be informed accordingly.

Very truly yours,

(Dr. Anukool Tuntimas)

Director and Executive Vice President:

Human Resource and General Administration

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

Disclaimer

CH. Karnchang pcl published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 01:30:01 UTC

CH. KARNCHANG

CH Karnchang : Joint Investment and Acquisition of Shares in Luang Prabang Power Company Limited

Send by mail :