ISDN signs MoU to acquire hydropower projects in Sumatra
Friday, June 28 2013 - 01:41 AM WIB
SGX-listed ISDN Holdings Limited, an integrated engineering solutions provider for diverse industries, through its wholly owned subsidiary Aenergy Holdings Limited, inked on Wednesday a legally non-binding memorandum of understanding (MoU) to acquire 80 percent shareholding interest in three Indonesian energy-related companies.
The three firms, namely PT Alabama Energy (PT Anggocci), PT Prisma Paluta Energy (PT Parduaan) and PT Charma Paluta Energy (PT Sisira) will pave the way for ISDN to gain a firm foothold in the hydropower industry in Sumatra. It will also open new opportunities to manage the planned mini hydropower developments in South and Central Sulawesi, the company said in a press statement on Thursday.
ISDN President Director Teo Cher Koon said that his company?s vision is to nurture the hydro power business into a significant growth catalyst for the Group. ?Since we first embarked on our studied diversification initiative, it has picked up considerable pace and the key elements are falling into place,? he said in the company?s announcement on Thursday.
The three companies that form the subject of the acquisition are equally and jointly owned by Charles D. Marpaung, and Sugiharto Sulaiman.
ISDN will pay the sellers US$ $550,000, US$ $900,000 and US$ 1 million in cash for ISDN?s intended 80 percent equity stake in each of PT Sisira, PT Anggocci and PT Parduaan.
PT Sisira has entered into a power purchase agreement (PPA) with state utility PT PT Perusahaan Listrik Negara (PLN) of North Sumatra on 15th June 2012 to build, own and operate a 4.6 MW mini hydro electric power plant at Aek Sisira Tarabintang subdistrict, Humbang Hasundutan, North Sumatra Province (Hydro Project 1).
PT Anggocci and PT Parduaan will sign PPA agreements with PT PLN to build, own and operate a 9 MW and 10 MW mini hydroelectric power plants respectively at Aek Anggocci (Hydro Project 2) and Aek Parduaan respectively (Hydro Project 3) in North Sumatra.
In an earlier announcement ISDN had indicated its target of developing a series of hydropower projects that could total 100 MW by the end of 2014. It also unveiled plans to develop three power plants in Sulawesi for a total of 18 MW installed base capacity.
Together with the three Sumatran mini hydropower plants, the Group could amass a combined total of 42 MW energy production capacity when fully realized.
Editing by Benget Besalicto Tnb.