Keppel Energy, J Power acquire 35% stake in Paiton II for $142.6 million
Friday, January 30 2004 - 11:37 AM WIB
The acquisition will be made through a Singapore incorporated joint venture, KJ Paiton Holdings Pte. Ltd., equally owned by Keppel Energy and J Power, Keppel Energy said in a statement.
According to the firm, J Power is linked to the Japanese government.
"Keppel Energy and J Power will each contribute $28.5 million with the balance $85.6 million to be funded through a limited-recourse loan facility. Keppel Energy will be using internally generated funds for its share of the acquisition," the firm said in a statement.
Following the acquisition, KJ Paiton Holdings will own a 35 percent in PT Jawa Power, which owns the Paiton II 2x610 megawatt (MW) coal fired power plant in the Paiton district, Probolinggo. The remaining shares are owned by German firm Siemens (50 percent) and local firm Bumipertiwi Tata Pradipta (15 percent).
According to Keppel, the acquisition agreement also allows KJ Paiton Holdings to acquire a 100 percent equity interest owned by Powergen in PT Powergen Jawa Timur, the operator of the power plant.
This will render an exclusive right for KJ Paiton Holdings to operate the power plant.
?The acquisition is in line with our strategy of achieving return-driven growth in the power generation business through selective development and acquisition. Jawa Power presents Keppel Energy an opportunity to tap the growing power market in Indonesia.? Ong Tiong Guan, Keppel Energy's executive director, commented in the statement.
Ong added that J Power, which operates the bulk of coal-fired plants and is the largest wholesaler in Japan, would bring relevant expertise to the proposed investment. (robert)
