THE Energy Regulatory Commission (ERC) yesterday blocked plans by a unit of PTT group to buy 69.11 per cent of the shares in fellow power producer Glow Energy.
In a unanimous resolution, the regulator ruled that the proposed transaction could stifle competition in the energy business, violating provisions in the Energy Business Law of 2550.
Global Power Synergy (GPSC) had sought to buy the stake in Glow from Engie Global Development B.V.
ERC secretary general Narupat Amornkosit said that the commission’s decision was based on the Energy Business Law of 2550 and the related regulations and the promotion of free trade and fair competition. The ERC will inform the related parties of the resolution and their right to appeal against the ruling.
GPSC president Chawalit Tippawanich said that the company had learnt about the resolution and is studying how to proceed next. It will maintain its current business plan and continue to explore growth opportunities locally and overseas.
The GPSC board resolved on June 19 to approve the company’s plan to acquire directly and indirectly 69.11 per cent of the total issued shares of Glow from Engie Global Developments and make a tender offer for the rest of Glow’s securities.
The company entered into a share-purchase agreement with the seller on June 20. The sale and purchase of shares were to proceed only after the fulfilment of conditions including the approval of the transaction by the ERC.
GPSC, in a filing to the Stock Exchange of Thailand yesterday, said that due to the ERC’s resolution, the conditions of the share-purchase agreement with Engie Global Development could not be fulfilled in the near future. The company is studying its options.