The Energy Regulatory Commission (ERC) plans to consider today a revised plan submitted last week by Global Power Synergy Plc (GPSC) for a 139-billion-baht takeover of Glow Energy Plc.
In the revised plan, GPSC is opting to buy a 69.11% majority stake in Glow, owned by French-based Engie, instead of a full takeover after the ERC declared that the previous takeover deal violated monopoly regulations.
The 69.11% stake is worth 95.9 billion baht.
A source familiar with the deal said GPSC may purchase some of Glow's assets but leave Glow's power plants in Map Ta Phut, Rayong out of the deal to prevent GPSC having a monopoly over the area.
The precise details of GPSC's plan to purchase Glow's assets have yet to be revealed because of the top secret nature of the agreement, according to the source.
"All seven commissioners are considering today whether the revised plan does not violate the monopoly regulations in Map Ta Phut, in which case the ERC will likely approve the deal," the source said.
The ERC, Thailand's power business regulator, previously blocked the deal in October. A second ruling in December confirmed that such as deal would breach the 2007 Energy Industry Act, which encouraged the regulator to liberalise the power business.
The ERC said the deal would let GPSC control the largest market share of private power purchase agreements (PPPAs) at Map Ta Phut Industrial Estate.
The ERC cited Section 60 of the act on preventing monopolies that reduce or limit competition in energy service.
Moreover, GPSC is a power business arm of the national oil and gas conglomerate, PTT Plc.
In the previous takeover deal, revealed in June, GPSC agreed to purchase 69.11% of Glow from Engie, with the remaining 30.89% to be bought through a tender offer.
Under the plan, GPSC was to own 80% of PPPAs in the Map Ta Phut area.
Before the takeover was set in motion, GPSC controlled 20% and Glow had 60%, with the remaining 20% owned by the Provincial Electricity Authority.
Upon merging Glow's assets into GPSC, the resulting operations would have been ranked as the fourth-largest power producer in the country at 4.835 gigawatts.
The Electricity Generating Authority of Thailand ranks first for power capacity, followed by Ratchaburi Electricity Generating Holding Plc, Gulf Energy Development Plc and Electricity Generating Plc.
Earlier, Gulf denied widespread reports that it was interested in acquiring Glow.
Gulf chief executive Sarath Ratanavadi rejected the rumour and said Gulf never approached Glow on a takeover deal.
"Gulf prefers new investment projects rather than acquisition deals because they have higher returns on investment than existing power projects," Mr Sarath said.
