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Investing.com -- BKV Corporation (NYSE:BKV) stock gained 4.8% on Wednesday after the company announced plans to increase its ownership in BKV-BPP Power joint venture from 50% to 75%.
BKV has entered into a definitive purchase agreement to acquire half of Banpu Power US Corporation’s interest in the power joint venture. The transaction values the acquired stake at approximately $376 million less 25% of BKV-BPP Power’s net indebtedness at closing. As of September 30, 2025, the joint venture’s net indebtedness was approximately $581.8 million.
The consideration will be paid 50% in cash and 50% in BKV common stock, with shares valued at $21.6609 each. BKV plans to fund the cash portion through a combination of cash on hand and borrowings under its existing reserve-based lending agreement, which has $800 million in available capacity.
"We are pleased to have reached an agreement with BPPUS to acquire the majority stake of the Power JV, enhancing our strategic flexibility and accelerating the potential growth in our power business," said Chris Kalnin, Chief Executive Officer of BKV.
Following the transaction, BKV will consolidate BKV-BPP Power’s financial results, providing greater visibility into the business’s cash flow generation. The company sees substantial growth opportunities in the ERCOT market in Texas, driven by load expansion, rising power demand from artificial intelligence and data centers, and available capacity at the joint venture’s Temple I and II plants.
The transaction is expected to close in the first quarter of 2026, subject to conditions including approval by at least 75% of Banpu Power Public Company Limited’s disinterested shareholders. Banpu North America Corporation, which holds a majority of BKV’s common stock, has already consented to the stock issuance.
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