Case Study: EdL Generation

Transaction Background

  • Based on the advice of EACP bankers, on November 2010 the Government of Laos (GOL) decided to separate and privatize EdL's power generation business and establish EDL-Gen PCL (EdL-Gen) as the owner / operator
  • EdL-Gen owns and operates a growing portfolio of power generating assets, supplying EdL as well as foreign buyers in Thailand, Vietnam, China and Cambodia
  • EACP bankers acted as sole advisor to the GOL for the feasibility study and restructuring of EdL to the formation of EdL-Gen and its US$120m IPO in 2011

Structural Models

A wide variety of structural models were considered for the restructuring and eventual IPO of EdL-Gen

  1. Vertical Integration Monopoly Model
  2. Monopsony Model
  3. Wholesale Competition Model
  4. Full Consumer Choice Model


Three factors were used for the valuation of EdL-Gen in order to capture defensive high earnings, growth potential and management's ability to shape a competitive company, these include:

  1. Financials
  2. Operations
  3. Market Conditions


Formation of the Program Management Office (PMO) to:

  1. Develop corporatization and privatization plan
  2. Implement valuation and transfer of assets, assignment of debt to EdL- Gen, manage HR issues
  3. Communicate program status and results to all stakeholders
  4. Identify required changes to planned activities and resources and seek approval for changes


Feasibility study outlining management, financial and legal issues

Clear roadmap for IPO:

  1. Preparation
  2. Transaction Structuring
  3. Privatization, Marketing & Execution

EdL-Gen Current Asset Portfolio