Electricity Generating Public Company Limited (SET: EGCO) has informed the Stock Exchange of Thailand that EGCO RISEC II, LLC, a wholly owned subsidiary of EGCO in the USA, entered into a purchase and sale agreement with Shell Energy North America (US), L.P. (SENA) and Cogentrix RISEC CPOCP Holdings, LLC and Cogentrix RISEC CPP II Holdings, LLC, subsidiaries of the Carlyle Group (collectively referred to as Carlyle), on October 18, 2024.
The agreement provides for a divestment transaction in which EGCO RISEC II, LLC will divest its 49% ownership interest in RISEC Holdings, LLC (RISEC) to SENA, and Carlyle will simultaneously divest its 51% ownership interest in RISEC to SENA. Upon completion, SENA will own 100% of RISEC, and both EGCO and Carlyle will be fully exited from RISEC.
The Transaction was approved by EGCO’s Board of Directors in the Meeting no. 11/2024, held on September 23, 2024. The transaction is expected to close in Q1 of 2025 subject to obtaining relevant regulatory approvals.
This divestment aligns with EGCO’s portfolio management strategy, allowing the company to utilize the proceeds from the Transaction for reinvestment designed to support its long-term growth and strategic objectives.
RISEC owns the Rhode Island State Energy Center, LP, an entity that owns a 609 MW gas combined cycle power facility located in Johnston, Rhode Island, USA (the RISEC Power Plant). The RISEC Power Plant operates within the New England Power market (ISO-NE), with 100% of its capacity and blackstart ancillary services contracted to ISO-NE. Additionally, the facility’s entire energy output and other ancillary services are fully contracted to SENA through an energy tolling agreement.
