Kiatnakin Phatra Securities (KKPS) highlighted Banpu Public Company Limited’s (SET: BANPU) sweeping transformation plan, aimed at simplifying its corporate structure and driving future growth.
As part of its “energy symphonics” initiative—encompassing operational upgrades, portfolio repositioning, and capital structure optimization—BANPU has outlined a three-stage overhaul designed to streamline its organizational complexity and reposition the group beyond its current holding company framework.
Central to the restructuring, BANPU intends to consolidate control over its 1.5-gigawatt portfolio of combined cycle gas power plants in the ERCOT region of the United States. BANPU’s U.S.-listed subsidiary, BKV—71% owned by BANPU—will acquire an additional 25% stake in these U.S. power assets from Banpu Power Public Company Limited (SET: BPP), in which BANPU holds a 79% interest.
BKV’s $376 million deal values the assets at an enterprise value of $1 million per megawatt—significantly above the historical acquisition cost of $0.6 million per megawatt. Following the transaction, BKV’s holding in these power assets will rise from 50% to 75%.
BANPU is also preparing a general tender offer for the remaining 21.3% of BPP shares it does not already own. The offer is priced at THB 13 per share, providing minority shareholders with an exit route should they oppose the impending merger.
The restructuring’s core objective is to merge BANPU and BPP into a new entity, aiming to eliminate structural complexities, lift the holding company discount, unlock value, and enhance share liquidity.
The new company (NewCo) will issue shares to replace existing BANPU and BPP holdings at a preliminary swap ratio of 0.35575 NewCo shares for each BANPU share and 0.74615 NewCo shares per BPP share, subject to adjustment based on general offer acceptance rates. NewCo is scheduled to list on the Stock Exchange of Thailand, issuing 4,049.622 million shares at par value of THB 10 each. Post-merger, BANPU shareholders will control 88% of NewCo, with the remaining 12% held by BPP shareholders.
KKPS views the transaction favorably, noting that although BANPU has successfully diversified from its roots in coal and power to a broader energy portfolio with substantial exposure to the U.S. market, its intricate structure has continued to weigh on its valuation.
According to KKPS, the proposed realignment should streamline capital deployment, enhance operational efficiency, and create more room for business expansion, both organically and through acquisitions. The brokerage reiterated its “Buy” rating on BANPU with a price objective of THB 6.50.
