Two SET-listed firms -- renewable energy developer Gunkul Engineering and IT retailer Jay Mart -- are bolstering their joint venture, JGS Synergy Power, through a share swap worth 500 million baht each to tap into increasing demand for rooftop solar panels.
Gunkul expects the cooperation to help customers better plan payments for solar energy technology through a variety of financial solutions, including instalments, without the need to pay a huge amount of money.
The company believes solar panels will become an eye-catching alternative for businesses that want to avoid high electricity bills using the state grid.
JGS Synergy was registered in March, initially focusing on the solar rooftop business and related credit offers.
The share swap was made directly between Jay Mart chief executive Adisak Sukumvitaya and Gunkul board chairman Gunkul Dhumrongpiyawut.
In December last year, both companies agreed to another share swap worth 500 million baht each following their announcement of a preliminary memorandum of understanding to establish the joint venture.
Gunkul made a 50% investment in JGS Synergy, while Jay Mart held a 40.1% stake and the remaining 9.9% was held by Singer Thailand Plc, which provides hire-purchase services.
JGS has a plan to list on the stock market in three years.
The company recently upgraded its 2022 revenue forecast to 150 million baht from 100 million projected in March.
Mr Gunkul said the synergy of energy products, retail business and credit offerings will boost sales, making it more convenient for customers to buy expensive energy technology.
Many large and small companies are waiting for installation of rooftop solar panels at their venues, according to Gunkul's website.
Gunkul previously projected its revenue to grow sharply by 72% to 16 billion baht over the next couple of years, up from 9.32 billion last year, thanks to expansion of a range of businesses, notably clean energy and cannabis.
Mr Adisak said the latest share swap reaffirmed both parties' confidence in the long-term business partnership via joint venture.
He said JGS is among three major investments targeted by Jay Mart this year.
Jay Mart set aside 2 billion baht for investment in three companies this year, said Mr Adisak.
First, Jay Mart spent 250 million baht purchasing a 25% stake in JayDee Group, a partnership with the electric appliance dealer.
Second, Jay Mart invested the 40.1% stake in JGS.
Third, Jay Mart invested in Thailand Amz Co to develop integrated commerce platforms and provide financial services to those platforms to improve its ecosystem.
These new investments are expected to generate revenue for Jay Mart starting this year, he said.
