According to Egcomp's statement submitted to the Stock Exchange of Thailand yesterday, the individuals are James Richard Truscott and Andrew John Pickering, collectively called the CLP Group.

The payments to be made to the CLP Group are Bt4.65 million for 7.42 million of BLCP's existing shares and Bt2 billion for 50 million of BLCP's newly issued shares. The shares have a par value of Bt100 each, partially paid-up at Bt40 apiece on November 6.

Egcomp stock closed 1.12 per cent up yesterday at Bt90.

Egcomp will make an advance payment of Bt2 billion to CLP-BLCP for equity injection on November 6, a sum which will be deducted from the final payment on share transfer. If the deal falls through, CLP-BLCP will pay the money back to Egcomp with interest of 8 per cent per year.

According to Egcomp's statement, the company's board considers the price of the BLCP share purchase to be appropriate.

"Such a purchase would optimise the company's and the shareholders' benefits from investing in power generation, the core business, and the management should propose this acquisition transaction to the shareholders' meeting for consideration and approval," the company quoted the board as saying.

Egcomp plans to borrow Bt5 billion to partly fund the acquisition and the remainder will come from working capital, the company said in its filing to the bourse.

BLCP operates a coal-fired power plant with a capacity of 673.25 megawatts, which started operations on October 1. Another plant with the same capacity is scheduled to start operations in February.

Both plants have 25-year power supply contracts with the Electricity Generating Authority of Thailand.

This transaction is considered a connected transaction since CLP Holdings is a major shareholder of CLP-BLCP and Egcomp, indirectly holding 100 per cent of CLP-BLCP's paid-up shares through CLP Power International and indirectly holding 11.21 per cent of Egcomp's paid-up shares through CLP Power Projects (Thailand) Ltd.

Egcomp has appointed Kim Eng Securities (Thailand) as its independent financial adviser for the deal.