EGCO invests 3 billion baht to buy 44.6% of TPN shares

Mr. Chakkrit Phibunphairote The President of EGCO Group (EGCO) said that EGCO has acquired ordinary shares in Thai Pipeline Network Company Limited ("TPN"), which operates the business of oil transportation by pipelines. To the northeast And provide oil depot services from Big Gas Technology Company Limited ("BIGGAS") in the amount of 7,739,998 shares, with a par value of 100 baht per share, representing 43 percent of the registered capital. And subscribe for additional shares in TPN in the amount of 3,185,000 shares with a par value of 100 baht per share, totaling 10,924,998 shares, representing 44.6 percent of the total registered capital after the capital increase. With an investment value of approximately 3,000 million baht. EGCO signed the share purchase and purchase agreement on 4 September 2019 and the shareholder agreement on 25 September 2019. "

TPN will carry out a project to expand the pipeline transportation system to the northeast region. In which the pipeline system will connect to the company's oil depot Thai Petroleum Pipeline Limited (Thappline) in Saraburi Province To the 142 million-liter TPN oil depot in Khon Kaen province Through a new underground transportation pipeline with a total distance of 342.8 kilometers, with an annual transport capacity of 5,443 million liters and can be extended to 7,338 million liters in the future. Under construction and expected to begin operation in the 4th quarter of 2021

"This investment is another step for EGCO to expand its investment in new energy related businesses. In which the oil pipeline business is a business that provides good returns in the long run And the project is considered a large project that is important to the national economy and has received support from the government. To support the increasing oil demand in the northeast region The majority of the customer base comes from the oil companies. In addition, the business partnership with BIGGAS is to coordinate strengths with partners who have expertise in the energy business. In the provision of services and transportation of fuel and natural gas This will increase competitiveness and create opportunities for other future development projects, "Mr Chakkrit said.

Power Solution Technology Company (PSTC) informed that the Board of Directors meeting held on 18 July 2019 approved BIGGAS, a 51% subsidiary, to sell 43% of TPN shares to EGCO, worth 2,901.50. Million by signing the purchase and purchase agreement for shares on 4 September Before signing the shareholder agreement today After the sale of shares in TPN, BIGGAS will reduce its stake to 57% from 100%, EGCO will hold 43% before TPN will increase its capital.

As for the proceeds from the sale of shares, there will be divided into 2 installments, with the first installment of 1.66 billion baht, paid on the day of purchase and subscription of TPN shares and the second installment of 1.24 billion baht under the condition when TPN entered into a loan agreement for Project construction

The proceeds from the sale of TPN shares will be used to invest in new projects of the Group. Which will occur in the future and enhance liquidity in cash flow With a partner that has knowledge and expertise in energy Resulting in the oil pipe project having greater operational potential