Superblock shareholders warned over planned $407m Thai solar investment

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A $407 million deal by Chinese solar power company Superblock to acquire 290 MW of Thai solar PV capacity is flawed, say Thailand’s securities regulator and the country’s stock exchange (SET), which have warned shareholders of the firm to scrutinize the details of the planned agreement.

In a rare move, the Thai regulators have reacted to advice from an independent financial adviser (IFA) who said that two of the five companies involved in the deal – which would see Superblock acquire all five to boost its PV portfolio by 290 MW – have a fair value that is lower than the acquisition price.

The Thai SET will not impose any limits on the stock’s trading, but its response to a suggestion by IFA Sage Capital that the deal is flawed will cast doubt on its fate.

"The SET recommends Superblock’s shareholders to carefully study the IFA report," read an SET statement. A similarly worded statement was also forthcoming from Thailand’s Securities and Exchange Commission.

Reuters has reported that despite Sage Capital’s objection to the terms of the deal, there is no guarantee that it will collapse. Shareholders at Superblock will vote on the plans on October 30.

Sage Capital also took issue with the stipulation in the agreement for Superblock to make large advance payments to the five companies involved in the proposed acquisition, opining that such a request was unfair and could "lead to an opportunity cost on the funds prepaid".

Seeking the installation and ownership of 500 MW of commercial PV capacity in 2015, Superblock chairman Jormsup Lochaya said that the investment will strengthen the company’s future revenue growth, calling it "suitable" for Superblock’s business objectives.

Earlier this month the Chinese firm secured a 75 MW supply deal with fellow Chinese company, inverter specialists Sungrow, for the shipment of inverters into the Thai market to support Superblock’s activities.