All Asia Asset Capital to sell Energy Central for £810,000

Shares in All Asia Asset Capital were down on Monday as the investor announced it will sell Energy Central to Chakris Kajkumjohndej, an existing shareholder of Andaman Power & Utilities, for 34.88m Thai baht (about £810,000), subject to shareholder approval.

The sale of Energy Central, which its sole asset is a stake in Andaman, is conditional on approval of All Asia’s shareholders at the next general meeting on 24 March.

In December, the company said that it following a review by the chief executive the company believes that its stake in in Admana Power, which is has stake in a project to construct and operate a gas powered 200 megawatt electricity generation plant in southern Myanmar, would be reduced to 0.07%.

In September 2016, Andaman had become majority owned by United Power of Asia Public Company (UPA) and that Andaman was moving forward to further developments and was seeking financing.

The company become aware of a power purchase agreement between Myanmar UPA Co (MUPA), which is substantially owned by UPA, and Myanmar Electric Power Enterprise (MEPE), a government owned utility responsible.

All Asia said that the main economic beneficiary of the power purchase agreement is UPA, as its owns 99% of MUPA, with the remaining 1% owned by Andaman and that given this, the company believed that its effective interest in the project is likely to be reduced to 0.07%. This is substantially lower than was previously anticipated by All Asia and so it could not be certain that it has any effective interest in the project.

Shares in All Asia Asset Capital were down 14.21% to 8.15p at 0804 GMT.