Asti plans to acquire Cahaya Sakti

By Romel S. Gurky

SGX-listed investment holding company Asti Holdings Limited, which is engaged in design, develop and manufacturing of semiconductor equipment, announced that it signed on Monday a non-binding term sheet with Ifachrul Madin, details of whom would be provided at a subsequent date, in relation to the company?s proposed acquisition of shares representing up to 55 percent of the total issued share capital of PT Cahaya Sakti.

Cahaya is an independent power producer in Indonesia. Ifachrul owns 100 percent of the total issued share capital of Cahaya, a company incorporated under the laws of the Republic of Indonesia. The target company holds, inter alia, the following assets:
i. License to operate independent power plants in Belawan, Medan (North Sumatra Province)
ii. License to build and operate a 452MW combined cycle power plant;
iii. License to import and set-up a 50MW power plant for Terminal 3 of the Jakarta Soekarno-Hatta International Airport; and
iv. Existing operating license at Tarakan City to operate independent power plants, collectively referred to as the ?assets?.

Asti said in a statement that The Term Sheet is intended to set out the main principles that will underlie the legally binding definitive documentation that the parties to the Term Sheet will enter into concerning the Proposed Acquisition (as defined above).

Asti said the closing of the Proposed Acquisition is subject to the company and Ifachrul having entered into the Definitive Documents by November 17, 2016 (the ?Long Stop Date?) for the proposed acquisition and the conditions precedent thereunder (including but not limited to the following) being fulfilled or waived before December 19, 2016 (the ?Target Closing Date?), or such other date as may be mutually agreed between the company and Ifachrul (the ?Conditions Precedent?):
a) Satisfactory due diligence (as determined by the company at its absolute discretion);
b) Satisfactory legal review of all documents related to the assets and the business of the target company (as determined by the buyer at its absolute discretion);
c) All approvals, consents and/or waivers necessary for the Proposed Acquisition from any third party being obtained, including but not limited to all governmental or regulatory approvals;
d) The approval of the board of directors and/or shareholders (as may be required) of the company and Ifachrul for the Proposed Acquisition being obtained;
e) Procuring such financing or funding as the Company may deem necessary for the purpose of the Proposed Acquisition and/or to carry out the business operations of the target company post-closing (including but not limited to capital expenditure requirements);

Upon signing of the Term Sheet, Asti will commence due diligence and will also

commence negotiations with the Seller with a view to agreeing the terms of the Definitive Documents for the Proposed Acquisition within the exclusivity period which commences from the date on which the Company and the Seller sign the Term Sheet and expiring on the earlier of (a) the Long Stop Date; or (b) the date the Term Sheet is terminated by mutual agreement of the Asti and Ifachrul.

Editing by Reiner Simanjuntak