AWR Lloyd https://www.awrlloyd.com Catalyzing the sustainability transition in the Indo-Pacific region Mon, 10 Jun 2024 07:34:47 +0000 en-US hourly 1 https://wordpress.org/?v=5.2.20 https://www.awrlloyd.com/wp-content/uploads/2022/06/cropped-logo-mobile-1-32x32.png AWR Lloyd https://www.awrlloyd.com 32 32 Real Corporate Sustainability: Resiliency to Catastrophic Crises https://www.awrlloyd.com/2630-2/ https://www.awrlloyd.com/2630-2/#respond Mon, 10 Jun 2024 07:34:14 +0000 http://www.awrlloyd.com/?p=2630 AWR Lloyd’s CEO is also the Director for Asia-Pacific Middle East Africa for Globalscope, a global network of independent M&A firms. At a Globalscope conference recently he emphasized that advising clients on ‘sustainable’ strategies is not only about decarbonization and Net Zero, it is also about developing contingency plans for other kinds of catastrophic crises.

]]>
https://www.awrlloyd.com/2630-2/feed/ 0
AWR Lloyd advises PTL on Joint Venture with DEOCA Group for the Laos-Vietnam Railway Project https://www.awrlloyd.com/awr-lloyd-advises-ptl-on-joint-venture-with-deoca-group-for-the-laos-vietnam-railway-project/ https://www.awrlloyd.com/awr-lloyd-advises-ptl-on-joint-venture-with-deoca-group-for-the-laos-vietnam-railway-project/#respond Wed, 01 Mar 2023 02:09:12 +0000 http://www.awrlloyd.com/?p=2563 Continued]]> Petroleum Trading Lao Public Company (‘PTL’) and DEOCA Group Joint Stock Company (‘DEOCA Group’) have signed a Joint Venture Agreement for the Laos-Vietnam Railway Project (‘LVRP’). AWR Lloyd is Project Advisor to PTL in relation to the project development and project finance of LVRP. AWR Lloyd assisted in the origination and development of the joint venture with DEOCA Group.

This transformational project aims to strengthen the two countries’ bilateral relations, further secure regional stability and provide Laos historic access to its own seaport granting the land-locked nation the ability to independently reach international markets.  The two conglomerates will partner to complete the line from the Thakhaek district in the Khammuan province of Laos to a seaport in the Ha Tinh province, stretching a total distance of approximately 250 kilometers. Once complete, the line will marry the Vientiane Logistics Park spanning across 382 hectares in Laos’ capital city to a seaport in northern Vietnam, fully unlocking the west-east and north-east trading channels in the Greater Mekong Subregion.

The Department of Railways, Ministry of Public Works and Transport of Laos has issued a certificate of approval for feasibility studies, and Vietnam’s Transport Engineering Design Inc. is currently carrying out a pre-feasibility study on the Vietnamese side of the border. The project aims for LVRP to be fully operational in phases, starting from the first quarter of 2027.

At the signing ceremony on 27th February 2023, the President of the Petroleum Trading Lao Public (PTL) Company, Mr. Chanthone Sitthixay, made the following comments: “The construction of the Laos-Vietnam Railway is essentially the implementation of the connectivity initiative of the Party and government to achieve the vision of the Lao government and the country’s development strategy for the transformation of Laos from a land-locked to a land-linked country”.

Chairman of the Board of Directors of the DEOCA Group Joint Stock Company, Mr Ho Minh Hoang echoed this sentiment and added “Of course, numerous challenges, obstacles and problems lie ahead, but fortunately the continuing support from the governments of Laos and Vietnam will enable us to achieve our goals”.

—-

About AWR Lloyd

AWR Lloyd has a 23-year track record providing project finance, M&A advisory and strategy consulting services to clients across the Indo-Pacific region from the Middle East, through South Asia to Southeast Asia. The firm is ranked by Vault as No.1 out of all consulting firms in the Asia-Pacific region in 2023 for Women and for Ethnic & Racial Diversity.

About DEOCA Group Joint Stock Company

DEOCA Group is a leading investment and transport infrastructure construction firm based in Vietnam. As a trusted developer for the Government of Vietnam, the firm has completed many national, government contracted projects across the country. Over the past decade the firm has built over 22km of tunnels, 300km of expressways and national roads, 6 major bridges and 15 toll stations.

About Petroleum Trading Lao Public Company

PTL Holding is an investment holding company headquartered in Lao PDR. The group has almost 30 years of experience operating in five key sectors, including trade and distribution of consumer goods, manufacturing of electronic items, logistics, fuel, and integrated infrastructure. Through its subsidiary, the group operates the IFC supported project, the Vientiane Logistics Park.

]]>
https://www.awrlloyd.com/awr-lloyd-advises-ptl-on-joint-venture-with-deoca-group-for-the-laos-vietnam-railway-project/feed/ 0
Globalscope launches Energy Transition Group https://www.awrlloyd.com/globalscope-launches-energy-transition-group/ https://www.awrlloyd.com/globalscope-launches-energy-transition-group/#respond Fri, 20 Jan 2023 09:54:49 +0000 http://www.awrlloyd.com/?p=2546 Continued]]>

Globalscope, one of the world’s leading networks of independent advisory firms, has today launched the ‘Energy Transition Group’ to co-ordinate cross- border investment transactions in the key sectors which are driving the world’s energy transition to greater sustainability.

The new sector group will focus on originating and executing transactions worldwide in the five main energy transition sub-sectors: (1) Critical Minerals, (2) Renewable Power, (3) Green Hydrogen & Alternative Fuels, (4) Electrification & Efficiency and (5) Carbon & Circular Economy. Globalscope’s Energy Transition Group will be co-led by AWR Lloyd and FICUS Advisory, both with extensive corporate finance advisory experience in the energy sector.

Alex Wood, CEO of AWR Lloyd welcomed the initiative: “Total annual investment in energy transition has doubled since 2015 but will need to triple by 2025 and then double again by 2030 if the world has any chance of achieving ‘Net Zero’ by 2050. The new Energy Transition Group will act as an important catalyst. The Globalscope network is ideally positioned to accelerate cross-border investment into key sectors like critical minerals, green hydrogen, renewables, e-mobility, conservation and recycling”

Mathias Möhrpahl, Partner at FICUS Advisory agreed and added “With around 70% of all greenhouse gas emissions coming directly from the energy sector, transition away from fossil fuels to lower carbon business models is the most effective way the world can achieve its goals of slowing global warming”.

Globalscope is a close-knit network of independent corporate finance advisory firms, with over three decades experience. In 2022 the network closed 266 transactions with a total transaction value of over US$20.8 billion. Among Globalscope’s currently active deals, approximately 1 in 5 currently fall under the Energy Transition sector category.

In October 2022, AWR Lloyd had the great honor of hosting the Globalscope Fall Conference in Bangkok, with a special focus on how the global advisory community can catalyze the transformation of Southeast Asia’s economies to greater sustainability. The event highlighted the importance of distinguishing Energy Transition as a focus sector within Globalscope.


About Globalscope

Founded in 1987, Globalscope Partners is a leading group of independent corporate finance and business advisers operating globally to support clients in cross-border M&A transactions, with over 55 members, 10,000+ deals completed globally, and 30+ year successful track record. Last year, the network collectively closed US$20.8 billion in deals.

About AWR Lloyd

AWR Lloyd has a 23-year track record providing M&A advisory and strategy consulting services to clients across the Indo-Pacific region from the Middle East, through South Asia to Southeast Asia. The firm was ranked by Vault as No.3 for ‘Innovation’ amongst all consulting firms in Asia-Pacific for 2022.

About FICUS Advisory

FICUS Advisory structures and executes M&A transactions and sophisticated financing solutions like buyouts, growth capital, refinancings, construction, bridge and project financings. Their sector focus is renewable energy.


For more information, please contact Ms Shruti Kothari, Head of Communications at AWR Lloyd

]]>
https://www.awrlloyd.com/globalscope-launches-energy-transition-group/feed/ 0
Partnerships for Business Resilience and Recovery in Southeast Asia https://www.awrlloyd.com/partnerships-for-business-resilience-and-recovery-in-southeast-asia/ https://www.awrlloyd.com/partnerships-for-business-resilience-and-recovery-in-southeast-asia/#respond Wed, 23 Nov 2022 05:42:40 +0000 http://www.awrlloyd.com/?p=2516 Continued]]> This year, with support from the Office of Global Partnerships at the US Department of State (US DOS), FHI360 and AWR Lloyd have joined forces to prevent economic backsliding and promote business resilience in the private sector across the ASEAN region.

The aftershocks of the COVID-19 pandemic, as well as the potential of future crises, still threaten significant damage to livelihoods across the ASEAN region. Together, FHI360 and AWR Lloyd are working to promote strong private sector protocols to ensure endurance and fortitude in the face of such disruptive forces. In a world of increasing uncertainty, it is critical that we build resilient systems capable of leveraging disruption to accelerate transformation, fuel innovation, and power growth.

Therefore, under the Partnerships for Business Resilience and Recovery in Southeast Asia, we have united our expertise to deliver the evidence-based Southeast Asia Business Resilience Toolkit in order to mitigate damage caused by COVID-19 and other major disruptions.

With the help of global health experts and business consultants, we are publishing the newest version of our Business Resilience Toolkit (1.8).

This time in order to ensure even greater accessibility we are releasing the Toolkit in both English and Thai.

Beyond the Toolkit, our services also include:

  • Working with host government health authorities through medical expert-led mediation and support.
  • Delivering effective corporate training on mental well-being, ESG, and other critical areas fostering long-term business sustainability.
  • Ensuring your partners or contractors are supported and engaged through communication, training, and compliance monitoring.

The partnership between FHI360 and AWR Lloyd provides a unique and powerful blend of public to private sector collaboration, evidence-based health expertise, and boutique management consulting. Our combined experience working with government health agencies, multinational companies, and state-owned enterprises gives us a unique perspective on navigating disruptions of any nature. We are uniquely placed to provide first-class support to help our clients build the fortitude they need to thrive in these unpredictable and turbulent times.

For more information, contact us at info@awrlloyd.com

]]>
https://www.awrlloyd.com/partnerships-for-business-resilience-and-recovery-in-southeast-asia/feed/ 0
AWR Lloyd advises Sri Lankan client on sale of Bangladesh LPG business https://www.awrlloyd.com/laugfs-gas/ https://www.awrlloyd.com/laugfs-gas/#respond Tue, 15 Nov 2022 06:49:44 +0000 http://www.awrlloyd.com/?p=2533 Continued]]> On 15th November 2022, Laugfs Holding Limited (Laugfs Holding), a Sri Lankan conglomerate, completed the sale of its Bangladesh liquefied petroleum gas (‘LPG’) marketing, logistics and distribution business, Laugfs Gas (Bangladesh) Limited (‘LGBL’). AWR Lloyd acted as advisor to Laugfs Holding, managing a competitive divestment process as part of an overall assignment to advise the group on the restructuring of its energy sector interests.

LGBL is a leading LPG distributor for retail and industrial use in Bangladesh. The company’s main assets include an LPG terminal at Mongla Port in the south of Bangladesh, a cylinder-filling and requalification plant and a network of regional distribution centers. Bangladesh’s LPG market is growing fast as the nation transitions towards cleaner fuel to reduce carbon emissions and increase energy security. LPG consumption in Bangladesh, which has been towards 1.2 million tonnes per annum in recent years is forecasted by AWR Lloyd to increase to over 4 million tonnes per year by 2030.

LGBL was sold to a Hong Kong based energy trading group for USD 23.4 million. AWR Lloyd will continue to advise Laugfs Holding in relation to the development and further restructuring of its energy sector interests, including securing a strategic investor for the group’s 30,000 tonne strategically located LPG storage terminal at the Hambantota International Port in Sri Lanka. The terminal has permits in place allowing it to expand to 45,000 tonnes of aboveground storage capacity, with possibilities to transform the terminal into one of the largest LPG transshipment and energy security hubs in the Indian Ocean. Additionally, pre-feasibility work has been completed by a leading underground storage consultant regarding potential cavern storage capacity of 60,000 tonnes.

About AWR Lloyd

AWR Lloyd has a 22-year track record providing M&A advisory and strategy consulting services to clients across the Indo-Pacific region from the Middle East, through South Asia to Southeast Asia. The firm was ranked by Vault as No.3 for ‘Innovation’ amongst all consulting firms in Asia-Pacific for 2022.

For more information, contact us at info@awrlloyd.com

]]>
https://www.awrlloyd.com/laugfs-gas/feed/ 0
AWR Lloyd hosts Globalscope M&A conference in Bangkok with focus on sustainability transformation https://www.awrlloyd.com/awr-lloyd-hosts-globalscope-ma-conference-in-bangkok-with-focus-on-sustainability-transformation/ https://www.awrlloyd.com/awr-lloyd-hosts-globalscope-ma-conference-in-bangkok-with-focus-on-sustainability-transformation/#respond Wed, 09 Nov 2022 06:29:16 +0000 http://www.awrlloyd.com/?p=2492 Continued]]>

AWR Lloyd, a leading Indo-Pacific advisory firm, had the great honor of hosting the 2022 Globalscope Fall Conference in Bangkok, Thailand. Globalscope is a network of independent mergers and acquisitions (‘M&A’) advisory firms, with over three decades experience. The network completed over US$8 billion in transactions last year and is set to achieve a much bigger collective deal quantum in 2022.

This year’s event had a special focus on how the global advisory community can catalyze the transformation of Southeast Asia’s economies to greater sustainability. The current and future impact of climate change, energy transition, future pandemics, geo-political conflicts, cyber-attacks, digitalization and technological disruption are compelling companies and financial institutions to prioritize long term resiliency, set Net Zero targets, reconsider business models, restructure asset portfolios and invest in ‘antifragile’ ventures. Globalscope members, including AWR Lloyd, are helping their clients to restructure, divest non-core businesses and grow to achieve these objectives.

Twenty-five Globalscope members from around the world gathered for four days in Bangkok at the end of October and beginning of November to exchange industry insights, discuss emerging trends and collaborate on prospective deals in all sectors. The Bangkok conference was a robust opportunity for our international network to connect in person and forge an even deeper alliance. Crucially, the event allowed the Globalscope network to strengthen its connections with Southeast Asia, inspiring greater cross-border collaboration, trade and investment going forward.

Throughout the conference, industry leaders were invited to share valuable sector knowledge, allowing members to develop a deeper understanding of key issues, trends and opportunities. Highlights included an insightful talk by Thailand’s former Finance Minister Mr. Korn Chatikavanij on improvements needed to strengthen the sustainability of the Thai economy, and a speech by Ms Somruedee Chaimongkol, CEO of the Pan-Pacific energy group, Banpu PCL, on the company’s transition in recent years to a ‘Greener Smarter’ value structure.

At Nan Bei Restaurant in the Rosewood Bangkok Hotel, Alexander Wood, AWR Lloyds CEO addressed the assembled Globalscope delegates along with some of the firm’s core clients and partners: “What you have here is a family of elite smaller firms, all sharing a culture of agility, discretion, creativity and resourcefulness. Our client service is personal, bespoke and normally long term. Tailored to each of our clients requirements. Going forward, AWR Lloyd intends to take a leadership role in relation to Energy Transition themes at Globalscope with a focus on renewable energy, e-mobility, energy efficiency, climate tech and critical minerals. We also hope to be a ‘hub’ firm for the group in the Indo-Pacific region.”

AWR Lloyd would like to thank all who participated, and extend special gratitude to Julie Aroune, Director of Operations, John R.Sloan, President and Kamal Rungta, Head of Conferences, for their part in making the event such a success.


About AWR Lloyd

AWR Lloyd has a 22-year track record providing M&A advisory and strategy consulting services to clients across the Indo-Pacific region from the Middle East, through South Asia to Southeast Asia. The firm was ranked by Vault as No.3 for ‘Innovation’ amongst all consulting firms in Asia-Pacific for 2022.

About Globalscope

Founded in 1987, Globalscope Partners is a leading group of independent corporate finance and business advisers operating globally to support clients in cross-border M&A transactions, with over 55 members, 10,000+ deals completed globally, and 30+ year successful track record. Last year, the network collectively closed US$8 billion in deals.


For more information, please contact Ms Shruti Kothari, Head of Communications at AWR Lloyd

]]>
https://www.awrlloyd.com/awr-lloyd-hosts-globalscope-ma-conference-in-bangkok-with-focus-on-sustainability-transformation/feed/ 0
Indo-Pacific Sustainability Transformation specialist AWR Lloyd enters India in Strategic Alliance with Centrum https://www.awrlloyd.com/indo-pacific-sustainability-transformation-specialist-awr-lloyd-enters-india-in-strategic-alliance-with-centrum/ https://www.awrlloyd.com/indo-pacific-sustainability-transformation-specialist-awr-lloyd-enters-india-in-strategic-alliance-with-centrum/#respond Tue, 09 Aug 2022 23:00:43 +0000 http://www.awrlloyd.com/?p=2456 Continued]]> Poised to leverage annual funding potential of USD 230 bn in Indian Infrastructure

MUMBAI, 10th August, 2022: AWR Lloyd, a leading Indo-Pacific strategy consulting and corporate finance advisory firm, has announced its entry into India through a strategic partnership with Centrum Capital Limited, the Investment Banking arm of the diversified financial services organization, Centrum Group. AWR Lloyd and Centrum will combine their expertise across the Infrastructure, Energy & Utilities, Clean-Tech, Logistics and Mobility sectors. The firms will work closely with private and public sector companies and financial institutions to offer scalable investment banking products, groundbreaking solutions and actionable insights for more sustainable development along with an extensive outreach to long-term investors, including Impact funds.

Alexander Wood, CEO and Co-Founder of AWR Lloyd expressed his enthusiasm: “Free from the bureaucracy and conflicts of the mainstream consultancies and bulge-bracket banks, the Centrum-AWR Lloyd alliance will bring fresh and innovative perspectives to clients in India. Our firms share a fiercely independent and entrepreneurial spirit. Both have a reputation for breaking out of the box of conventional thinking. The new partnership will formulate bespoke solutions and implement transactions for clients in India designed to accelerate transformation to more sustainable business models, capital structures and asset portfolios. We very much look forward to working with Sandeep and the teams at Centrum”.

Sandeep Upadhyay, Managing Director for Infrastructure Advisory at Centrum Capital responded in kind: “We are excited to partner with the highly talented team at AWR Lloyd. I am certain that leveraging our synergistic expertise will bring even more innovative solutions for our clients. The Infrastructure sectors continue to present huge opportunities in the fund-raising and corporate advisory space, which combined with a focus on Sustainability Transformation will prove even more interesting and value accretive.”

AWR Lloyd is ranked by Vault as No.3 for ‘Innovation’ amongst consultancies in the Asia-Pacific region in 2022. Established in the year 2000, the firm has a 22-year trackrecord in providing strategy, equity and project advisory services across the Indo-Pacific region from Southeast Asia to the Middle East, with strong UK and Australia connections. Recent assignments include advising on the S$1.1 billion sale of Singapore-based solar energy group, Sunseap to Portuguese utility, EDPR, on behalf of long-term Asian energy client Banpu; resiliency consultancy to the US government in relation to the impact of COVID-19 across Southeast Asia; and capital-raising advisory for a US$5.5 billion infrastructure and railway project between Laos and Vietnam.

Centrum Capital’s Infrastructure Advisory covers a wide range of sectors such as Infrastructure, Renewable Energy, Electric Mobility, Logistics and Warehousing amongst others. Some of their recent deals include raising private equity and growth capital for rapidly growing firms such as Premier Energies and Jupiter International in the Energy and Clean Tech space, and raising funds for start-ups in the two wheeler and four wheeler categories pursuing greater sustainability.

News release in The Economic Times: https://economictimes.indiatimes.com/industry/banking/finance/centrum-awr-lloyd-joins-hands-to-offer-infra-i-banking-services/articleshow/93460828.cms

From left: Nikhil Khajuria, MD of India at AWR Lloyd Nadda Trisrisupa, MD of Corporate Development at AWR Lloyd Chandir Gidwani, Chairman Emeritus, Centrum Group Alex Wood, CEO of AWR Lloyd Jaspal Bindra, Executive Chairman, Centrum Group Sandeep Upadhyay,  MD – Infrastructure Advisory, Centrum Capital Limited

 

 

 

 

 

 

 

 

 

 

About Centrum Group

One of India’s fastest-growing and diverse financial services groups, Centrum has been serving the financial and advisory needs of institutions and individuals for two and a half decades. Our Institutional services include Investment Banking and Broking to FIIs, Pension Funds, Indian Mutual Funds, Domestic Institutions etc. We also provide Wealth Management Services to HNIs and Family Offices, Affordable Housing finance in tier 2 & 3 cities and Retail Broking services. Our Asset Management business has funds across Private Debt and Venture Capital. We have been providing MSME Loans and Micro finance for a few years. With these businesses now merged into Unity Small Finance Bank, our most recent venture, they are expected to scale up substantially. We are a PAN India Group with a strong leadership team of seasoned professionals with a successful track record, operating out of 140+ cities and with an international presence in Singapore.

About AWR Lloyd

AWR Lloyd is ranked as a top Strategy Consulting Firm for ‘Innovation’ and for ‘Diversity’ in the Asia-Pacific region. Since its inception 22 years ago, the firm has completed over 500 engagements for corporate and public sector clients across the Indo-Pacific region providing bespoke and customized services in Strategy Consulting, Project and M&A Advisory and Venture Development. AWR Lloyd provides innovative ‘Antifragile’ strategy and implementation support to help make businesses more resilient to the growing impact of disruptive mega-trends such as climate change and Covid-19. To this end, the firm provides expert advice on measuring and improving ESG performance, develops cutting edge sustainable solutions for public and private sector finances and helps major industrial corporations implement energy transition, reduce negative impact and accelerate the world’s shift to a more sustainable economic paradigm.  

For any further information, please contact:-

AWR Lloyd
Shruti Kothari
M: +66 85 251 6728
E: shruti@awrlloyd.com

Centrum
Ajay Aswani
T: +91 982 041 5593
E: ajay.aswani@centrum.co.in

 

]]>
https://www.awrlloyd.com/indo-pacific-sustainability-transformation-specialist-awr-lloyd-enters-india-in-strategic-alliance-with-centrum/feed/ 0
Rever Auto & BYD partnership https://www.awrlloyd.com/rever-auto-byd-partnership/ https://www.awrlloyd.com/rever-auto-byd-partnership/#respond Tue, 09 Aug 2022 11:00:37 +0000 http://www.awrlloyd.com/?p=2477 Continued]]> Congratulations to our partner Rever Automotive CO., Ltd and BYD on their partnership for the distribution of New Energy Vehicles across Thailand!

BYD is the world’s largest New Energy Vehicle manufacturer, aiming to combat pollution and reduce carbon emissions through the use of cutting edge technology solutions. Rever Automotive Co., Ltd is now Thailand’s official distributor of BYD vehicles, expanding the nation’s electric vehicle market to ensure greater accessibility to the future of transport technology, bringing them one step closer to their goal of providing « New Energy for All ».

Together Rever Automotive CO., Ltd and BYD are pioneering the transition to cleaner transport technology systems. Thailand has pledged to reach carbon neutrality by 2050 and Net Zero GHG Emissions in or before 2065 – this partnership is a leap in the right direction, making great progress towards the nation’s sustainability goals !

 

]]>
https://www.awrlloyd.com/rever-auto-byd-partnership/feed/ 0
AWR Lloyd ranked Top 3 strategy consulting firms for Innovation in Asia-Pacific https://www.awrlloyd.com/awr-lloyd-top-3-consulting-firms-for-innovation-in-asia-pacific/ https://www.awrlloyd.com/awr-lloyd-top-3-consulting-firms-for-innovation-in-asia-pacific/#respond Wed, 16 Mar 2022 10:23:15 +0000 http://www.awrlloyd.com/?p=2423 Continued]]>
AWR Lloyd is pleased to share that we have been ranked amongst the Top 3 consulting firms for Innovation in Asia-Pacific in the 2022 Vault Rankings. We were also ranked #2 for Diversity across the region.

Our wide range of cultural identities, perspectives, experiences and skillsets are critical foundations for our ability to provide our clients with agile, multi-faceted solutions.

The Vault rankings are based on employee feedback through a survey of more than 16,000 consultants across the world.

]]>
https://www.awrlloyd.com/awr-lloyd-top-3-consulting-firms-for-innovation-in-asia-pacific/feed/ 0
The End of Shareholder Primacy – a trick question ? https://www.awrlloyd.com/the-end-of-shareholder-primacy-a-trick-question/ https://www.awrlloyd.com/the-end-of-shareholder-primacy-a-trick-question/#respond Thu, 02 Dec 2021 07:08:12 +0000 http://www.awrlloyd.com/?p=2324 Continued]]> Listen to our CEO discussing what he sees as a trick question.

Alex Wood, CEO of AWR Lloyd, is a strong believer in Stakeholder Capitalism, but argues that there is no other (successful) form of capitalism.

The question ‘Is it the End for Shareholder Primacy ?’ is dangerous because it implies a lack of understanding about how free market economies work (or should work). But he says, it is important to ask provocative questions, so that we can be sure we have good answers.

In a free society, a company is established by private shareholders as a voluntary and enterprising decision. Shareholders are the owners of a company. Of all a company’s stakeholders, shareholders take the greatest financial risk … If things go wrong … which they often do in business … shareholders can lose all the capital that they invest. They put their capital at risk on the understanding that they also have the potential for the greatest returns if things go well.

In a free and competitive economy, shareholders do not have any ‘primacy’ as such, in the sense of giving them any special coercive powers over other stakeholders.

For a business to be successful and generate returns, the owners of a business must develop mutually rewarding relationships with a diverse mix of stakeholders, all of whom engage voluntarily with them and their representatives.

Shareholders need the willing co-operation of stakeholders to achieve their objectives – and vice versa. A successful economy is an ecosystem of free exchange, interdependence and symbiotic co-operation. If a stakeholder simply doesn’t like a company’s methods, style or products, then they have the freedom to terminate their association with the company.

What has been happening in recent decades is that people across the world have been waking up to their rights and powers as stakeholders. They have been refusing to buy the products of companies they regard as unethical – and refusing to work for such companies. In many cases they have gone further in publicly shaming unethical practices and business models which they see as damaging to the physical environment. And they have every right to do so… If shareholders do not take these concerns into account, their businesses will likely fail.

What has become known as ‘ESG’ is a way for shareholders and the management teams which represent them – to establish systems for actively addressing the concerns and priorities of all such stakeholders to ensure win-win relationships.

Developing Best Practice ESG systems and strategies for companies in Asia has become a core part of AWR Lloyd’s work in recent years – including Nature Based Solutions, Energy Transition and Corporate Venture Capital strategies.

 

]]>
https://www.awrlloyd.com/the-end-of-shareholder-primacy-a-trick-question/feed/ 0
Banpu divests stake in Sunseap for S$469 million https://www.awrlloyd.com/banpu-to-divest-stake-in-sunseap-for-s490-million/ https://www.awrlloyd.com/banpu-to-divest-stake-in-sunseap-for-s490-million/#respond Thu, 04 Nov 2021 06:50:44 +0000 http://www.awrlloyd.com/?p=2318 Continued]]> Congratulations to our longtime client Banpu on their divestment of a 47.5% stake in Singapore-based solar energy group Sunseap. Banpu’s shareholding has been sold to EDP Renewables, a subsidiary of Portugal’s biggest power utility, for US$347 million(c.S$469 million).

Banpu intends to capitalize on the learning curve from the investment in Sunseap to redeploy both expertise and freed-up capital into a rapid expansion of their clean energy flagship company, Banpu NEXT. Banpu NEXT’s current projects comprise renewables, batteries, electricity trading, smart cities, and e-mobility, including Thailand’s first e-ferry.

AWR Lloyd has been strategic advisor to Banpu in their sustainability transformation and the transaction to divest the Sunseap stake.

Source: Reuter (3 Nov 2021), https://www.reuters.com/business/cop/edp-renewables-buys-majority-stake-sunseap-values-firm-816-mln-2021-11-03/

]]>
https://www.awrlloyd.com/banpu-to-divest-stake-in-sunseap-for-s490-million/feed/ 0
India’s COVID-19 numbers could potentially cast a shadow on oil consumption https://www.awrlloyd.com/indias-covid-19-numbers-could-potentially-cast-a-shadow-on-oil-consumption/ Mon, 10 May 2021 10:40:19 +0000 http://www.awrlloyd.com/?p=2288 Continued]]> AWR Lloyd’s Rajat Kapoor wrote an article in the Economic Times on India’s petroleum consumption trends in light of the increasing number of Covid cases.

As the second wave of the coronavirus batters India, petroleum products usage and by extension, crude consumption, are expected to take a downward, albeit short-term, hit.

Fuel: A marked decrease in travel due to on going lockdown restrictions has been mirrored in the consumption of transportation fuels, with sale of both petrol and diesel falling last month to nearly 20% from March 2021 levels, even though this drop was not as sharp as that seen in April 2020, when a harsh nation-wide lock down was imposed

Crude Oil: OPEC, earlier this year, had forecasted a 13% jump, over 2020, in the country’s oil demand to reach nearly 4.99 mn bopd. A slight downward revision is, logically, now expected with most analysts estimating India’s 2021 crude consumption to hover around the 4.8 – 4.9 mn bpd mark, still 9 – 10% higher than last year. 

The ongoing localised lockdowns are, however, unlikely to severely impinge upon the economy’s growth and by extension, petroleum usage in the country.

Full article in the Economic Time: https://energy.economictimes.indiatimes.com/news/oil-and-gas/opinion-indias-oil-consumption-expected-to-take-a-marginal-hit-due-to-covid-19/82500089

 

 

 

]]>