ISDN unit ups ownership in RI power plant developer

By Romel S. Gurky

SGX-listed ISDN Holdings Limited announced Friday that the company has, through its subsidiary, LAA Energy HK Company Limited (LAA HK), acquired of 6,000 ordinary shares in the share capital of PT LAA Energy (PTLAA) representing 5 percent of the entire share capital of PTLAA from PT Petasia Energy for a total purchase consideration of Rp 7,005,000,000 (equivalent to US$600,000).

The company said in a statement the purchase consideration was determined on a willing buyer willing seller basis taking into consideration the book value of the sale shares as at July 31, 2016 of Rp 6,890,000,000 (equivalent to US$529,000). The purchase consideration had been fully settled in cash.

Following the completion of the acquisition, LAA HK holds 95 percent of the share capital of PTLAA while PT Petasia Energy holds the remaining 5 percent of the share capital of PTLAA.

The above acquisition had been funded by internal resources and 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 December 31, 2016.

LAA HK and Petasia Energy set up PTLAA in July of 2014. ISDN said last year the joint venture company has received the in-principle approval from the government to develop a 20 MW hydropower plant along the Rawa River in Sigi Regency, Central Sulawesi.

Editing by Reiner Simanjuntak