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Notification on the Investment in Solarta Company Limited

Backมกราคม 14, 2554

("TRANSLATION")

RH 024/2011

14th January 2011

Subject: Notification on the Investment in Solarta Company Limited

Attention: The President of the Stock Exchange of Thailand

Ratchaburi Electricity Generating Holding Public Company Limited ("the Company") would like to inform the Stock Exchange of Thailand ("the SET") regarding the investment of the Company in the solar power generation project through 49 per cent share purchase in Solarta Company Limited; the Project Developer. The Share Purchase Agreement and the Shareholders Agreement were signed on 13th January 2011. The details are as follows.

1. Project Description:

Currently, Solarta Company Limited has been developing 8 solar power generation projects, with 34.25 megawatts capacity in total. These projects are located in Phra Nakhon Si Ayutthaya Province, Suphan Buri Province and Nakhon Pathom Province. All of them have non-firm power purchase agreements for very small power producer using renewable energy with the Provincial Electricity Authority with subsidy of 8 Baht per kWh adder from the Power Department Fund Management Division, Office of the Energy Regulatory Commission for 10 years. The commercial operations are scheduled during 2011 and 2012.

2. Shareholders and the Value of Transaction:

- Ratchaburi Electricity Generating Holding Public Company Limited holds 49 per cent shares

- Yanhee Solar Power Company Limited holds 51 per cent shares.

The source of fund of this investment is from the Company's capital, equity investments, representing approximately 595 Million Baht, which is regarded a small size transaction (the value of the transaction is lower than 15 per cent of the Company's net asset). According to the returns criteria, when comparing the investment amount with the Company's total net asset, the transaction size is valued at 0.86 per cent of the Company's net asset with reference to the Company's financial statement as of 30th September 2010.

3. Expected Benefits:

The Company will obtain the return on investment according to its shareholding. The investment is in line with the Company's goal to expand its business towards the renewable energy and also meets with the government policy regarding renewable and green energy. Also, it represents the Company's responsibility towards society and the environment.

Please be informed accordingly and kindly disseminate the information herein to investors. If there is any progress of the Project, the Company will report to the SET later on.

Sincerely yours,

 

(Mr. Peerawat Pumthong)
Senior Executive Vice President-Business Development
Acting on behalf of President

Corporate Secretary Office
Tel. 66(0) 2794 9510
66(0) 2794 9515-6
Fax. 66(0) 2794 9929

Attachments

  • 2011-01-14_RATCH01_EN.pdf (Size: 61,834 bytes)