Thailand’s BCPG Exits Japanese Solar Portfolio

Niwat Adirek, President and CEO of Thailand’s BCPG, announced through a Stock Exchange of Thailand disclosure, the divestment of BCPG’s solar portfolio in Japan. The deal consists of nine solar power projects with a total installed capacity of 117 MW, and the Asset Management and operation and maintenance company. The proceeds realised from the exit are to be reinvested in other renewable projects.

BCPG signed a share purchase agreement with Obton, a large Danish solar player backed by Nordic private equity firms, to divest the company’s Japan subsidiary and all investments in the Japanese solar power plants, valuing the assets at about US$302 million. The transaction is expected to be completed within the first quarter of 2024.

This divestment transaction is in line with BCPG’s long-term strategy to develop and operate world-class quality renewable power plants and exit at the right time to realize the full value of the assets and to recycle the capital.

“Our solar projects in Japan have drawn attention from investors worldwide, assuring that our projects and operational platform meet the world-class standards in terms of business performance, revenue stream, and environmental aspect, including talent acquisition and development,” said Niwat.

BCPG made its first investment in renewable energy assets in Japan in 2016 before its IPO in 2017, with an operating capacity of 13 MW. From there the company further developed and constructed an additional of 132 MW to its portfolio. In 2018, the Company completed its first asset sales of 27 MW by setting up a Private Infrastructure Fund.

BCPG currently operates 117 MW solar power plants in Japan, 104 MW in operation, and 13 MW under development. The latest transaction received interest from a wide range of investors worldwide, as the portfolio consists of superior quality assets located in strategic locations, and its exceptional operating performance produces a stable cash flow to investors as well as playing a role in lowering the country’s greenhouse gas emissions.