ISDN acquires 49% of Punggawa Datara Energy

By Romel S. Gurky

SGX-listed ISDN Holdings Limited announced on Wednesday it has entered into a sale and purchase agreement with Perusahaan Daerah (Holding Company) Gowa Mandiri to acquire, through its subsidiary PT SDM Bahagia Sejahtera, 49% of the entire issued and paid-up share capital in PT Punggawa Datara Energy.

The consideration for the acquisition is US$563,500 which will be satisfied by cash upon completion of the acquisition. No valuation was conducted as the parties were able to reach an agreement on the consideration which was arrived at on willing buyer, willing seller basis, based on:

(a) PT PDE has not commenced business; and
(b) No profits are attributable to the sale shares.

Following the completion of the acquisition, the company will hold 46.55% of the effective interest in PT PDE.

PT PDE is in the business of constructing, operating and maintaining of hydropower plants and also the production of electric power in Indonesia. As PT PDE has no current operations, there is no meaningful book value and net tangible asset value available for PT PDE.

In a statement in July 2014, ISDN said PDE plans to build a 10-MW hydropower plant in South Sulawesi.

Editing by Johannes Simbolon