Thai energy firm B. Grimm Power’s subsidiary has signed a share purchase agreement to co-invest in a 257MW solar power plant project located at Phu Yen province in Vietnam.
As per the terms of the agreement, the subsidiary B. Grimm Renewable Power 2 will acquire 80% of ordinary shares in Phu Yen TTP Joint Stock Company from Truong Thanh Viet Nam Group (TTVN) for $35.2m.
TTVN will own the remaining 20% stake in Phu Yen TTP, which is a project company investing and developing in the solar project.
Expected to commence commercial operations from 30 June next year, the solar power project has a 20-year power purchase agreement (PPA) for 214.16MW with Electricity of Vietnam (EVN).
B. Grimm Power will conduct a final legal, financial and accounting due diligence in order to proceed with the investment.
In addition, the company will enter into material transaction agreements, including the engineering, procurement and construction contract and the PPA by Phu Yen TTP.
Established in 1991, B. Grimm Power focuses on the development, financing, construction and operation of green-field power plants.
Last month, the company’s subsidiary B. Grimm Renewable Power 1 signed a cooperation agreement to co-invest and develop a solar power plant project with Vietnamese construction company Xuan Cau.
Dau Tieng Ninh Energy Joint Stock Company is investing in and developing the solar power plant, with 420MW installed capacity in Vietnam.