Engaging international strategic investors, Tatung is to achieve profit realization from solar power plant investment
2020/08

Tatung Company (“Tatung”) announced today that its solar energy subsidiary, Tatung Forever Energy, will sell 90% shares of its wholly-owned subsidiary, Sheng Yang Energy, to Global Renewable Power Company Limited (“GRP”), the subsidiary of Global Power Synergy Public Company Limited (“GPSC”, a listed company on The Stock Exchange of Thailand). Following the divestment of Tainan Chi-Ku Project to the Japanese investors, Tatung is once again collaborating with international strategic investors for the development of solar power business. The success of collaborating with international partners demonstrates Tatung’s ambition in solar energy sector and is also seen as a token of supporting the government policy for attracting foreign direct investments to Taiwan. Selling solar power stations has been a common practice in the industry and is also one of Tatung’s business models. The estimated value of the transaction is around NT$1.5 billion, which is expected to improve Tatung Group’s revenue and help achieve the goal of sustainable growth.

With the objective of effective capital allocation, Tatung has established the model of holding the solar energy assets developed under individual SPVs (Special Purpose Vehicle), and recovering the development capital through divestment of the SPVs’ shares. Such business model allows Tatung to maintain sufficient capital to further expand solar energy business and explore other new opportunities. Sheng Yang Energy, established in 2015, is the first SPV set up by Tatung. It currently generates a capacity of 53.98MW and with another 2.05MW under construction. A full operation is expected to start by the end of 2020.

GRP, the purchaser in the transaction, is 100% owned by Global Power Synergy Public Company Limited (“GPSC”) in Thailand, the power flagship of PTT Group. The core business of GPSC is in the power and utilities industries, and has achieved 5,026MW in the relevant sectors in the end of 2019. In the renewable energy sector, GPSC is not only focusing on developing the Thai market, but also is looking to establish a global presence. This collaboration is GPSC’s first step in entering the Taiwanese market. A long-term partnership will be established between GPSC and Tatung Company, with the objective of jointly exploring the rich potential business opportunities in Taiwan and Southeast Asia markets, which will further enhance Tatung’s reputation in the solar energy sector globally.

Deeply rooted in the solar energy sector, Tatung has completed over 858 solar power projects with over 149MW currently in operation. In addition, Tatung has sufficient experience in the development of various types of sites, ranging from roof-top, ground-mounted, floating, to the more complex livestock/fishery coexistence scheme. Furthermore, it has been a consecutive 4 years that Tatung Group has never made an insurance claims for any solar power plants indicating Tatung’s exceptional quality in construction. With years of experiences and excellent quality, Tatung Company and Tatung Forever Energy will continue to provide services in monitoring, operation and maintenance for Sheng Yang Energy.