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
Vertical Integration Monopoly Model
Monopsony Model
Wholesale Competition Model
Full Consumer Choice Model
Valuation
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:
Financials
Operations
Market Conditions
Restructuring
Formation of the Program Management Office (PMO) to:
Develop corporatization and privatization plan
Implement valuation and transfer of assets, assignment of debt to EdL- Gen, manage HR issues
Communicate program status and results to all stakeholders
Identify required changes to planned activities and resources and seek approval for changes
IPO
Feasibility study outlining management, financial and legal issues
