Nopadej Karnasuta, President – Thailand, Malaysia and Energy & Industrial Solutions Business of B.Grimm Power Public Company Limited (SET: BGRIM), revealed that its wholly-owned subsidiary, B.Grimm Power Tiara Sdn. Bhd., has entered into Sale and Purchase Agreements as well as Shareholders’ Agreements with KAB Energy Holdings Sdn. Bhd. (KABEH).
The transaction involves the acquisition of a 49% stake in two of KABEH’s wholly-owned subsidiaries in Malaysia. The details are as follows:
- Jati Cakerawala Sdn. Bhd.: B.Grimm Power Tiara will acquire 1,960,784 ordinary shares, equaling 49% of the company’s issued share, at a price of RM 41,521,052.67.
- Eentier Sdn. Bhd.: B.Grimm Power Tiara will acquire 490 ordinary shares, or 49% of the company’s issued share, for a price of RM 490.
The primary objective of these acquisitions is to collaborate on the development of a combined-cycle gas turbine (CCGT) power plant with a total capacity of up to 1,500 megawatts (MW) in Malaysia.
The investment includes the share acquisition and the land for power plant construction. The area is a former power plant where the power purchase agreement (PPA) expired in 2024, but some facilities remain usable. BGRIM is currently negotiating a new PPA with the government. Initially, the project is to be included in Malaysia’s energy plan and will supply power to Tenaga Nasional Berhad (TNB).
The construction of the 1,500-megawatt CCGT plant is under feasibility study, with the initial investment divided into two phases of 750 megawatts each. Construction of the first phase is expected to begin in 2027. The investment amount is being assessed, but the site is ready for development. Construction is expected to take approximately three years, with the commercial operation date (COD) projected for 2030.
This investment is in line with the company’s strategy to diversify its portfolio and mitigate the risk from Thailand’s Ft (Fuel Adjustment Cost at the given time) and higher gas prices. The IPP (Independent Power Producer) model better reflects gas costs than SPP (Small Power Producer), enhancing portfolio stability and reducing the volatility of Ft and fuel costs. Furthermore, Malaysia offers political stability and clear policies promoting renewable energy. The company also sees opportunities for further investments in both gas-fired and renewable power plants in the future.
Bualuang Securities noted that BGRIM’s investment is a joint venture with Kinergy Advancement Berhad (KAB), a Malaysia-listed energy firm. According to KAB’s previous investment data, the project’s core asset is about 37.5 hectares of land with complete infrastructure, including a 275 kV high-voltage power line from Tenaga Nasional Berhad (TNB) and the PGU III natural gas pipeline, both ready for use.
Meanwhile, BGRIM continues to expand its data center clientele. It has partnered with Amata Corporation PCL (SET: AMATA) and Sumitomo Corporation (Thailand) to sign a PPA with NTT Global Data Centers, a global digital infrastructure provider, for a 100-megawatt project in Amata City Chonburi Industrial Estate. Commercial operation is expected by June 2027, reflecting the growing power demand in the data center sector and reinforcing BGRIM’s role as a major energy provider to the high-technology industry in the region.
The brokerage firm estimated that BGRIM’s 49% stake in the Malaysian power plant will generate about THB 700 million in annual profit. Including the benefits from supplying power to NTT’s data center (an additional THB 100–200 million yearly), net profit is projected to exceed THB 800–900 million per year. The recommendation remains “Buy,” with a target price of THB 20.
