Move will see Sime Darby’s exit from the power sector
Kuala Lumpur, 16 June 2014 – Sime Darby Berhad has entered into an agreement with B.Grimm Power Ltd (B.Grimm) for the sale of its power business in Thailand for a total consideration of RM522.9 million (USD162.9 million).
The disposal was finalised through an international tender and is expected to be completed by 30 June 2014. Sime Darby’s indirect subsidiary Sime Darby Energy Pte Limited (SDE) is divesting all of its shares in Sime Darby Power Company Limited (SDPC), Sime Darby LCP Power Company Limited (SDLP) and Sime Darby O&M (Thailand) Company Limited (SOMT).
As part of the total consideration, B.Grimm will be taking over an inter-company loan amounting to USD36.2 million (RM116.2 million) given by one of Sime Darby’s subsidiaries, Sime Darby Far East (1991) Limited, to the Thailand power business.
B.Grimm is one of Thailand’s leading private power generation companies. It currently operates 6 gas-fired combined cycle cogeneration power plants with an accumulated energy generating capacity of 733 megawatts (MW) and serves electricity and steam to over 100 industrial customers across 6 industrial parks, as well as the Electricity Generating Authority of Thailand (EGAT) and the Electricity of Vietnam (EVN).
B.Grimm currently has another 10 power plants under construction and in the pipeline for future development. A total investment of US$2.1 billion in Thailand related to existing operational projects, projects under construction, and development, is expected to bring B.Grimm’s total power generating capacity to 2,000 MW by the year 2019, which will make it Thailand’s second largest Small Power Producer.
“The decision to dispose the power business in Thailand is in tandem with Sime Darby’s long-term business strategy to consolidate and focus our attention on our core businesses,” said Sime Darby President and Group Chief Executive Tan Sri Dato’ Seri Mohd Bakke Salleh.
In April, Sime Darby disposed its Malaysian power business to Malakoff Corporation Berhad for RM300 million. The sale of the Thailand power business will see Sime Darby’s exit from the power industry.
The power plants in Thailand are located within the Laem Chabang Industrial Estate in the eastern part of Thailand. They consist of two gas-fired combined-cycle cogeneration plants with a combined capacity of 163 megawatts and steam capacity of 70 tonnes/hour.
The power plants are also the sole provider of power and steam generation in the industrial estate with a strong customer base for electricity and steam. Cogeneration plants are amongst the most efficient power generation sources in Thailand and this sector continues to garner strong government support.
For further information please contact:
Ahmad Shahriman Johari
Head, External Communications
Group Communications & Corporate Affairs
Sime Darby Berhad
Tel: (603) 2711 0923
Fax: (603) 2698 0645
E-mail: shahriman.johari@simedarby.com