Intraco obtains approval to acquire power company
Friday, April 21 2017 - 01:24 AM WIB
Petromindo
IDX-listed heavy equipment company PT Intraco Penta Tbk obtained on Thursday shareholders? approval for a proposed rights issue as the company aims to acquire shares in a power company called PT Petra Unggul Sejahtera (PUS).
Finance Director Fred L. Manibog said that the acquisition forms part of the company?s diversification strategy into the power sector.
PUS is the parent company of PT TJK Power, which operates a 2x65 MW coal-fired power plant (PLTU) in Batam, Riau Islands Province, and which holds rights to expand it by another 2x55 MW at the same location.
As reported on Thursday, Intraco had on had on March 27 signed an agreement to acquire 30 percent stake in PUS for Rp 337.5 billion. The company said it will buy the shares from Halex Halim, Petrus Halim and Jimmy Halim, who are all members of Intraco?s board of directors and commissioners. The company said it will use internal funds worth Rp 104.9 billion to finance the acquisition, while the remainder Rp 232.6 billion will be raised via rights issue.
Elsewhere, Fred said that the Batam power plant will provide revenue contribution for Intraco. ?We hope that Intraco?s revenue this year to grow by around 20 percent from last year?s Rp 1.51 trillion,? he said.
He added that once TJK Power?s 2x100 MW coal-fired power plant project in Bengulu starts operation in 2020, Intraco is set to obtain guaranteed revenue stream for 25 years totaling around US$2.46 billion.
Editing by Reiner Simanjuntak