Aggreko acquires Indonesian power rental firm

By Alexander Ginting

UK power generator manufacture Aggreko plc announced on Tuesday that it has acquired PT Kerta Bumni Teknindo, an Indonesia-based power rental company for a maximum consideration of US$32.8 million equating to 1 times net asset value.

KBT has around 200MW of diesel and gas contracts on hire with Indonesian state electricity firm PLN, which adds to the 140MW that Aggreko has contracted. KBT was established in 1993 and has successfully been serving the power rental market since 2010.

There is an escrow in place allowing for clawback should any of the acquired contracts terminate before a certain period of time.

Chris Weston, Chief Executive, said: "Aggreko has had a long and productive relationship with PLN and Indonesia, and this acquisition will deepen this further. PLN has been clear in its ambition to improve the power situation in East Indonesia in particular, and we will be well placed to support this with our extended presence and competitiveness."