Thai GPSC shares jump after $453 million investment in India solar firm

BANGKOK (Reuters) - Thai electricity firm Global Renewable Synergy Company Pcl (GPSC) saw its shares climb over 4% on Wednesday after it announced a purchase of 41.6% of India’s Avaada Energy for 14.8 billion baht ($453.29 million).

The renewable energy investment sent GPSC’s shares up 4.36% in morning trading against a 0.4% decline on the benchmark index at 0500 GMT.

GPSC said the move increases its renewable energy capacity to 2,145 megawatts (MW) or 32% of the total capacity of 6,613 MW.

GPSC, a unit of state-owned energy giant PTT Pcl, considers India as a focus country for renewable energy expansion.

“The investment in this platform aligns with the company’s growth strategy in the renewable energy business,” GPSC chief executive Worawat Pitayasiri said in a statement.

Avaada has solar power capacity of 1,392 MW with another 2,352 MW under construction, which will begin commercial operations by 2022.

“This is a positive surprise,” said Finansia Syrus Securities analyst, Suwat Sinsadok, adding that the acquisition cost was reasonable.

The deal comes days after another PTT unit, PTT Global Chemical Pcl, announced a $4.75 billion acquisition of German coating resins maker Allnex.

($1 = 32.6500 baht)

Reporting by Chayut Setboonsarng; Editing by Ed Davies, Martin Petty