Electricity Generating Public Company Limited (EGCO Group) has finalized the sale of a 49% equity stake in Banpong Utilities Company Limited (BPU) and Klongluang Utilities Company Limited (KLU) to J-POWER Holdings (Thailand) Co., Ltd. (J-POWER) for approximately THB 2,765 million on 10 September 2026. The transaction reinforces EGCO Group’s disciplined asset recycling framework while retaining its 51% controlling majority in both power generation subsidiaries.
Strategic Divestment and Partnership Execution
EGCO Group completed the divestment of the 49% equity interest in BPU and KLU following the final transfer of shares and financial settlement with its international partner, J-POWER. The transaction delivers an immediate cash inflow of approximately THB 2,765 million, which bolsters the company’s financial flexibility and supports proactive portfolio management under its designated POWER4 strategic plan.
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.”
Operational Continuity and Asset Profile
Under the terms of the transaction, EGCO Group maintains a 51% majority shareholding and retains ongoing operational management over both facilities. BPU and KLU remain subsidiaries of EGCO Group, ensuring recurring profit shares and continuous cash flow recognition within the firm’s consolidated balance sheet.
The transaction encompasses two combined-cycle power facilities:
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Banpong Utilities Company Limited (BPU): Installed capacity of 256 MW
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Klongluang Utilities Company Limited (KLU): Installed capacity of 122 MW
Both plants operate under 25-year long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT), alongside localized commercial contracts to deliver electricity and industrial steam to industrial users.
Capital Redeployment and Expansion Pipeline
The proceeds strengthen EGCO Group’s financial foundation as it mobilizes an investment budget of THB 30,000 million toward domestic and international power sector ventures. Identified targets include domestic opportunities arising under the PDP 2026 framework, Direct PPA schemes, and Battery Energy Storage Systems (BESS). Capital allocations also support international expansions targeting natural gas and renewable energy assets, with an emphasis on the United States market.
Mr. Tawatchai noted that the group remains committed to continuous portfolio optimization: “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.”
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