EGCO Group Unlocks THB 2.8 Billion Through Strategic Asset Recycling, Completes BPU-KLU Partnership Transaction with J-POWER

Reinforcing the success of the Asset Recycling strategy to enhance financial flexibility while advancing new projects for the energy transition

Electricity Generating Public Company Limited or EGCO Group has announced the successful completion of the divestment of a 49% equity interest in Banpong Utilities Company Limited (BPU) and Klongluang Utilities Company Limited (KLU) to its international strategic partner, J-POWER Holdings (Thailand) Co., Ltd. (J-POWER). The transaction boosts liquidity and provides immediate revenue recognition of approximately THB 2,765 million, reflecting the effectiveness of the company’s “POWER4” strategy through disciplined Asset Recycling. EGCO Group retains a 51% stake and continues to operate both power plants, while leveraging the capital proceeds to fund high-potential new projects that deliver sustainable returns to shareholders.

Mr. Tawatchai Sumranwanich, President of EGCO Group, stated, “The successful completion of this transaction marks a significant milestone in driving our Asset Recycling strategy under the “POWER4” strategic framework, showcasing our proactive portfolio management capability. The cash inflow of approximately THB 2,765 million will strengthen our financial flexibility and enhance our capital allocation efficiency, allowing us to deploy capital into higher-yield investments that align with clean energy trends and future technologies.”

Retaining 51% Stake with Continuous Cash Flow Recognition

The transaction involves the sale of a 49% equity interest in Banpong Utilities Company Limited (BPU) and Klongluang Utilities Company Limited (KLU), which operate combined-cycle power plants with installed capacities of 256 MW and 122 MW, respectively. Both facilities hold 25-year long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT), as well as power and steam sales contracts with industrial customers in their respective areas. Following the complete transfer of shares and settlement on 10 September 2026, EGCO Group maintains its status as the shareholder with a 51% stake. Consequently, BPU and KLU remain subsidiaries of EGCO Group, enabling the company to consistently recognize profit shares and cash flow streams into its portfolio while synergizing operational expertise with J-POWER, a long-standing strategic partner.

Enhancing Portfolio Potential Towards “Gold Standard” Growth

Mr. Tawatchai concluded, “EGCO Group remains committed to continuously transforming and optimizing our investment portfolio. Asset Recycling serves as a key financial tool that solidifies our capital foundation, fully supporting an investment budget of THB 30,000 million to capture new opportunities. These include prospects under the PDP 2026, Direct PPA schemes, Battery Energy Storage Systems (BESS) projects, as well as expanding our overseas natural gas and renewable energy portfolio, particularly in the United States. Throughout this journey, we will maintain strict financial discipline to generate sustainable value and returns for our long-term shareholders.”