Asia Green Energy to focus on eucalyptus-derived biomass

SET-listed Asia Green Energy, a local bituminous trader and logistics service provider, is restructuring its business by focusing more on the green segment, following its new biomass acquisition, reported Bangkok Post.

It is also purchasing an extra 292.1 million shares in Asia Biomass Plc (ABM) for 380 million baht. This is according to deputy managing director of Asia Green Energy.

The transaction is enacted as a share swap and tender offer, and is scheuled to be finalised in the final quarter of 2024.

Asia Green Energy will give ABM shares in two of its companies: a 24% share in QTC Energy Plc and a 100% share in Green RDF Co.

The new share purchase will increase Asia Green Energy's ownership in ABM to between 51% and 100%, up from a 7.42% share at the moment.

The move is being made as ABM restructures its business to focus more on eucalyptus-derived biomass.

The higher share in ABM will increase revenue from green business for Asia Green Energy and result in a lower proportion of revenue from the coal trade.

The revenue proportion from the coal business will fall to 75% next year, down from 95% right now, according to Panita.