Beijing Gas Blue Sky Holdings has entered into a subscription agreement with Surangrat Chirathivat, a key shareholder and president of Global Power Synergy Group (GPS), an energy investment holding in Thailand. The Chinese company also entered into a non-binding strategic cooperation agreement with GPS.
GPS was solely funded and established by Surangrat and her husband, both of whom are members of the Central Group, one of Thailand's largest conglomerates which runs more than 4,800 branches of store network globally with net saleable area of over 4.5 million sq m and revenue of more than US$9.17 billion in 2016. GPS is an investment company in various energy-related assets as well as energy commodities trading.
Together with its partners, the company has handled more than US$2billion in trading activities. The company aims to strengthen electricity security for Thailand, and natural gas is deemed to be the main source of electricity generation for the country. GPS has been heavily focused on expanding its natural gas business and is actively seeking global strategic partners.
The company has conditionally agreed to issue 150 million new shares to Surangrat, representing approximately 1.50 per cent of the issued share capital of the company. The net proceeds of the subscription will be approximately HK$83 million, and it is expected that the net proceeds will be used to finance the expansion of the natural gas business and the general working capital of the group.
Tommy Cheng, Co-Chairman, Chief Executive Officer and Executive Director of the group, said: "We believe the subscription represents an ideal opportunity for the company to raise additional capital for its future business developments, to enhance its capital base and broaden its shareholders' base at reasonable cost. Furthermore, we believe entering the strategic cooperation agreement will create a strategic cooperation relationship between the company and GPS and potentially realise more business opportunities for the group."