BCPG exits Japan solar portfolio

Editorial Staff

BCPG exits Japan solar portfolio worth over 10 billion baht, transaction expected to complete latest within Q1 2024.

President and CEO of BCPG Plc, Niwat Adirek announced through the SET disclosure the divestment of BCPG’s solar portfolio in Japan, consisting of nine solar power projects with a total installed capacity of 117 MW, and the Asset Management and Operation and maintenance company.

The proceed realized from the exit is to be reinvest in other renewable projects to enhance its rapid expansion. On December 1, 2023, BCPG signed a share purchase agreement with Obton, a large Danish solar player, backed by Nordic private equity, to divest the Company’s Japan subsidiary and all investments in Japanese solar power plants, valuing JPY 42.97 billion or equivalent to 10.37 billion baht, in which 6.93 billion baht are equity value and 3.44 billion baht of net debt.

The transaction is expected to complete latest within the first quarter of 2024. This divestment transaction is in line with BCPG’s long-term strategy to develop and operate world-class quality renewable power plants and exit at the right timing to realize the full value of the assets and to recycle the capital.

BCPG made its first investment in Japan since 2016 before its IPO in 2017, with an operating capacity of 13 MW. The company from there further developed and constructed an additional of 132 MW to its portfolio.
In 2018, the company completed its first asset sales of 27 MW by setting up a Private Infrastructure Fund. BCPG currently operates 117 MW solar power plants in Japan, 104 MW in operation, and 13 MW under development.

The transaction has received interest from wide range of investors worldwide, as the portfolio consist of superior quality assets located in strategic locations, and exceptional operating performance producing a stable cashflow to the investor as well as playing a role in lower the country’s GHG emission.

The equity value of BPCG’s Japan portfolio sales transaction stated in its disclosure to SET, in comparing to the book value, would result in a surplus of more than 2.3 billion baht, creating a significant value to the company and its shareholder. The proceed from divestment would be used to reinvest in other renewable assets, supporting BCPG’s growth.

“Our solar projects in Japan have drawn attention from investors worldwide, assuring that our projects and operational platform meet the world-class standards in terms of business performance, revenue stream, and environmental aspect, including talent acquisition and development,” said Mr Niwat.