HoA on acquisition of Sokoria geothermal project terminated

By Ruli Setiawan

ASX-listed Raya Group Limited (RYG) said that a Heads of Agreement (HoA) signed in January together with its Indonesian partner PT Bakrie Power and Australia-based Space Con Pty Ltd, under which the latter would acquire an 85 percent stake in PT Sokoria Geothermal Indonesia (SGI), has been terminated.

?The Heads of Agreement as announced on 23rd January 2015 has now been terminated following failure to receive requested materials needed to support change of shareholders with the Indonesian authorities by the agreed date of 11 March 2015,? Raya said in a statement Monday.

?Raya and Bakrie have now commenced discussions with other parties who have expressed recent interest in the Sokoria Project,? it added.

Raya Group holds 45 percent stake in SGI, while Bakrie controls the majority.

In October of last year, SGI signed a power purchase agreement (PPA) for the 30 MW Sokoria geothermal power plant project on FLores Island with state owned electricity firm PLN.

Editing by Reiner Simanjuntak