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Banpu investors in turmoil: 38% loss on BPP repatriation!
Banpu plans to return the “Banpu Power” shares and criticizes the pricing policy. Analysts warn small shareholders of losses.
Banpu investors in turmoil: 38% loss on BPP repatriation!
The story of Banpu Power, a major player in Thailand's energy sector, is taking an exciting turn these days. How Mr. Data Reportedly, the parent company Banpu is planning to bring Banpu Power back into the corporate structure. However, this decision to offer a purchase price of 13 baht per share in a tender offer is causing excitement among Banpu Power's small shareholders, who find the price to be far too low - a full 38% below the original value of 21 baht at which the spin-off took place in 2016.
The merger of Banpu Power, which will create a new company - called "NewCo" - is seen as a strategic step to improve the company's structure. Small shareholders express their concerns that they would have to accept significant losses if they accepted the offer. Analysts advise carefully reviewing offering documents and considering fairness reports. They emphasize that the merger can not only centralize corporate governance but also unlock the value of decentralized energy companies.
Financial situation and future prospects
The financial indicators of the last few years show the challenges that Banpu Power is facing. In 2022, the company had sales of 25.4 billion baht and a profit of 5.7 billion baht. However, this fell to 31.2 billion baht in sales and 5.3 billion baht in profit in 2023, after which the 2024 numbers remained critical with 26.7 billion baht in sales and 1.7 billion baht in profit. So far this year, sales are 14.2 billion baht, with a profit of just 1.8 billion baht.
Banpu itself reported sales of 275.3 billion baht and a profit of 40.5 billion baht in 2022, but showed a loss of 682.4 million baht in 2024 and a further loss of 1.4 billion baht is forecast for 2025. For Banpu, 2022 and 2023 were marked by a global energy crisis from which the company was able to capitalize, but now there are signs of a slowdown in the coming year.
Strategic realignment
For Banpu, this restructuring is also an opportunity to advance its “lean organization”. The goal is to reduce complexity and accelerate the transition to clean energy. Partnering with BKV to improve liquidity and restructure capital shows a clear direction for future development and the need to remain competitive in the fast-moving energy market.
In such a dynamic environment, the question arises as to how the current situation will affect the share price and stock market values. Small shareholders should not ignore possible risks as they may face significant losses. Banpu seems to have some challenges to overcome in the coming period.