ABM Investama to acquire 2 power plants in Sumatra
Saturday, April 7 2012 - 03:14 AM WIB
ABM Corporate Strategy Director Yovie Priadi said that one of the power plants is a 15-megawatt mine-mouth coal-fired power plant in Aceh with a value estimated to reach US$10 million.
"We will not acquire 100 percent ownership in the power plant. However, we will try to become a majority shareholder, with about 50 to 70 percent ownership,? Yovie was quoted by The Jakarta Post as saying.
After the acquisition, ABM will increase the plant?s capacity to 50 megawatts.
The other one to be acquired by ABM is a gas-fired power plant in Jambi. It is an independent power producer (IPP) project, which has a capacity of 110 megawatts and is worth between $80 million and $90 million.
?We are expecting to finish the acquisition of the two power plants in this second quarter,? Yovie said.
The power plants will be managed by ABM subsidiary PT Sumberdaya Sewatama, which already has a 20 percent stake in PT Metaepsi Pejebe Power Generation (Meppogen) in South Sumatra.
Sumberdaya currently holds a 42-percent share of the temporary power market. The company has supplied 934 megawatts of temporary power, mostly to meet domestic demand.
Yovie said that acquisitions in Aceh and Jambi would help the company to boost income from its power businesses. He cited that electricity business contributed about 15 percent to the company?s revenue last year.
?We want that power business will contribute up to 20 percent,? Yovie said, adding that the fund for the acquisitions had been included in ABM?s $335 million capital expenditure this year.
ABM Finance Director Willy Adipradhana said that about $62 million of the company?s total capital expenditure would be channeled to mining businesses, $129 million to mining services, $73 million to power and $19 million to logistics.
Willy said that the capital expenditure would be financed by equity and bank loans. (*)