GPSC is to proceed with acquisition of GLOW Upon ERC's green light
GPSC will go ahead with its planned to acquire GLOW, citing that the transaction will be beneficial the country while customers are assured of fair and equitable treatment.
On 26 December 2018, the Energy Regulatory Commission (ERC) approved in principle the merger of Global Power Synergy Public Company Limited or GPSC and Glow Energy Public Company Limited or GLOW, subject to a condition precedent that GLOW must divest its stake, Glow SPP 1 Company Limited (SPP1) before or during the merger process. The ERC also provides the subsequent conditions after merger to ensure GLOW’s customers to have the fair and transparent treatment and in good governance practices by GPSC.
Mr. Chawalit Tippawanich, the president and chief executive officer of Global Power Synergy Public Company Limited, announced that GPSC is willing to comply with all of conditions in the ERC’s resolution. The ERC’s approval reflected GPSC’s determination to merge its business with GLOW for greater efficiency and stability in providing utilities in the Map Ta Phut Industrial Estate and areas in the Eastern Economic Corridor, a strategic location that supporting the government’s economic development policy.
“GPSC hereby affirms that our operation will be transparent and fair and adhered to business ethics. The current fees and service conditions are to be maintained as specified in the existing contracts. GPSC will also commit to all eleven conditions set by the ERC to ease the concerns and assure no discriminating and unfair undertakings.”
GPSC and GLOW will proceed with the acquisition transaction following to the divestment of GLOW’s stake, SPP1, as required by the ERC. Once the divestment process is completed, GPSC will immediately go ahead with the acquisition.
The total share acquisition is at 1,010,976,033 shares or 69.11% of total issued shares. Subsequently, GPSC will acquire the remaining shares through the tender and offer process.