ISDN acquires interest in Izmi Power Mandiri

By Ruli Setiawan

SGX-listed ISDN Holdings Limited announced on Wednesday that it has entered into a sale and purchase agreement with Muhammad Isa Indrawan to acquire, through its subsidiary Aenergy Holdings Company Limited, 49 percent of the entire issued and paid-up share capital in PT Izmi Power Mandiri.

The consideration for the acquisition is Rp 3.854 billion (approximately US$0.304 million) 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 Izmi has not commenced business; and
(b) No profits are attributable to the sale shares.

Izmi is in the business of hydropower energy. As Izmi has no current operations, there is no meaningful book value and net tangible asset value available for the firm

The acquisition shall be funded through a combination of capital injection, bank borrowings and other forms of suitable investment instruments that is not expected to have a material impact on the company?s earnings per share and net tangible assets per share for the current financial year ending Dec. 31, 2015.

Editing by Johannes Simbolon