Shares of Banpu Power, a major electricity producer in Thailand, jumped to their highest level in a year after its parent company, Banpu, announced a plan to buy the rest of the shares it doesn’t already own. The deal, worth 8.5 billion baht ($261 million), shows Banpu’s effort to simplify its business and prepare for future growth.

The Buyout Offer

Banpu, a Bangkok-based energy and coal company controlled by the Vongkusolkit family, said it plans to buy 650.5 million shares of Banpu Power that are currently held by minority shareholders. The company offered 13 baht per share, with the purchase expected to happen in December.

After the announcement, Banpu’s shares rose 16% to close at 5 baht, while Banpu Power’s stock price soared 25% to 12.80 baht on the Stock Exchange of Thailand (SET). This surge pushed Banpu Power’s shares to their highest level in a year.

Merger Plan After the Buyout

Once the buyout is complete, Banpu and Banpu Power will merge into a new company that will also be listed on the SET. The goal is to combine the two businesses into a single, stronger energy company.

As part of the merger plan:

  • Banpu shareholders will receive 0.36 shares in the new company for each Banpu share they currently hold.

  • Banpu Power shareholders will receive 0.75 shares in the new company for each Banpu Power share.

The merger is expected to be completed by the third quarter of 2026, though the final share swap ratio could still change.

Banpu said this merger would make it easier to manage its assets and create a more efficient energy business that combines both traditional and renewable energy operations.

Sale of U.S. Gas Business Stake

Separately, Banpu Power has agreed to sell 25% of its stake in its U.S. gas business to BKV Corp., which is a New York-listed subsidiary of Banpu. The deal is valued at $230.5 million and is expected to be completed by the first quarter of 2026.

After this sale, Banpu Power will still own 25% of the gas-fired power plant business in the U.S. The move allows the company to raise cash that can be used to reduce debt or fund new projects.

CEO Comments

According to Issara Niropas, CEO of Banpu Power, the merger marks an important step in transforming the company.

“The amalgamation marks a key step in transforming Banpu Power from a regional power generator into a key growth platform within Banpu Group,” Issara said.

He added that selling part of the U.S. gas business would free up funds that could be used to lower debt or invest in new growth opportunities, especially in renewable energy and clean technology.

About Banpu and Its Business

Banpu is one of Thailand’s biggest and oldest energy companies. It started as a coal mining company but has expanded into electricity generation, natural gas, and renewable energy such as solar and wind power.

The company operates in several countries, including Thailand, Indonesia, Vietnam, Laos, Mongolia, China, Japan, Australia, and the United States.

Banpu is majority-owned by the Vongkusolkit family, one of Thailand’s richest business families, with an estimated net worth of $1.2 billion.

Besides Banpu, the family also owns stakes in other major companies such as:

  • Mitr Phol Group, one of Asia’s largest sugar producers.

  • Erawan Group, a listed property and hotel company that operates several well-known hotels in Thailand.

Why the Deal Matters

Analysts say the buyout and merger plan show Banpu’s desire to simplify its structure and increase efficiency. By merging Banpu Power with the parent company, Banpu can better coordinate its power and energy businesses under one brand.

It will also make it easier for the company to raise money, attract investors, and grow its renewable energy portfolio. Banpu has been gradually moving away from its traditional coal business and investing more in cleaner energy sources.

The buyout price of 13 baht per share gives minority shareholders of Banpu Power an opportunity to sell their shares at a premium. The strong stock performance following the announcement also shows investor confidence in Banpu’s future strategy.

Looking Ahead

After the merger and stake sale, Banpu aims to become a more balanced energy company with a mix of fossil fuels and renewables. The company expects to complete the merger by late 2026, depending on regulatory approvals and shareholder votes.

Banpu’s leadership believes that combining its assets will help it stay competitive in the changing global energy market, where there is growing demand for clean, affordable, and reliable energy.

The deal also highlights Banpu’s shift from being mainly a coal company to becoming a diversified energy group ready for the future.

Published: 31th October 2025

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