EGAT to conduct IPO

Author: | Published: 1 Aug 2005
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Chandler MHM Ltd

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Bubhajit Building, 7th - 9th Floors
20 North Sathorn Road
Bangkok 10500
Thailand

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+662 266 6485

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On June 24 2005, the Electricity Generating Authority of Thailand (EGAT) was converted into a public limited company. Two royal decrees were published:

  • Royal Decree BE 2548 (2005), which states that EGAT plc will have powers, obtain exemptions, have special rights and receive protection as prescribed and granted by the law governing EGAT and other laws applicable to EGAT. Certain assets of EGAT plc are not subject to execution (assets related to the electricity generating business for common interest). Specified employees of EGAT plc performing work on electricity systems have official powers under the Criminal Code.
  • Royal Decree BE 2548 (2005), which prescribes that the Electricity Authority of Thailand Act is repealed as of June 24 2005.

EGAT plc is governed by the provisions of the Public Limited Companies Act.

EGAT is a party to power-purchase agreements with independent power providers, state power providers, and other generators. Because converting EGAT into a public company is deemed an act of state, there was no need to obtain consents or approvals from counterparties to the power purchase agreements.

EGAT plc is 100% owned by the Ministry of Finance. EGAT plc plans to conduct an initial public offering (IPO), offering no more than 25% of its shares to the public, but the timing of the IPO is uncertain.

A T Chandler