ISDN completes acquisition of Charma Paluta Energy
Tuesday, February 4 2014 - 03:09 PM WIB
SGX-listed ISDN Holdings Limited announced on Tuesday that the acquisition of 80% equity stake of PT Charma Paluta Energy (PTC) to develop mini hydropower plant in North Sumatra has been duly completed on Jan. 30 2014 and PTC is now a subsidiary of the company.
This acquisition will cement the ISDN and its subsidiaries? footprint in the vast Indonesian energy market where hydro-electric has been identified as one of the key energy sources to meet rising demand of electricity for residential, business and industrial consumers in urban and suburban areas in Indonesia.
ISDN and its subsidiaries have revealed plans to develop a series of mini-hydropower plants ? four in Sumatra, and three in Sulawesi - amounting to 50 MW combined installed base capacity. Additionally, the Group is seeking in-principle approval for the larger scale 126 MW Laa River hydropower facility in Sulawesi.
The firm announced the acquisition plan in a statement on Aug. 13, 2013.
In the statement, the firm said that it through its wholly owned subsidiary Aenergy Holdings Limited, has entered into a sale and purchase agreement to acquire 80 percent equity stake in PTC for US$450,000 from its equal and joint owners -- Charles D Marpaung and Sugiharto Sulaiman -- who each sold 144,000 shares to offer a total aggregate of 288,000 shares.
Following the acquisition, PTC will subsequently be 80 percent-owned by ISDN while the remaining 20 percent shares will be held equally by Marpaung and Sugiharto.
PTC has entered into a power purchase agreement (PPA) with PT PLN (Persero), Indonesia's state-run power distribution company to build, own and operate a 4.6MW mini hydropower plant at Aek Sisira Tarabintang Sub-district, Humbang Hasundutan, North Sumatra province. The PPA states PT PLN will purchase the energy output at a tariff rate of Rp 787 or US$0.08 per KWh for a tenure of 20 years.
Editing by Johannes Simbolon