Keppel says YTL?s Paiton power plant interest acquisition not yet final

Singapore conglomerate Keppel Corporation Limited said on Tuesday that despite Malaysia?s YTL Power International intention to acquire 35 percent stake in PT. Jawa Power from PT.Bumi Pertiwi Tatapradipta, the transaction was not yet final, as it still required approval from other shareholder.

Jawa Power is the owner of the 1,220-MW coal-fired power plant, which is located in Probolinggo, East Java.

On Monday YTL signed agreement to acquire 35 percent equity stake and loan stock interests in Jawa Power and 100 percent equity interest in P.T. Powergen Jawa Timur from Bumipertiwi, a shareholder of Jawa Power, after Bumipertiwi acquires the same from Powergen UK plc and its subsidiaries through the exercise of its right of pre-emption over the shares in Jawa Power.

Earlier in January, Keppel and Japan?s Electric Power Development Co. (J-Power) had entered into sales and purchase agreement with Jawa Power?s 35 percent shareholder Powergen UK, in which the former will buy the latter?s 35 percent equity in PT. Jawa Power and 100 percent stake at PT.Powergen Jawa Timur. Powergen Jawa Timur is a company which sole purpose is to operate, manage and maintain Paiton plant under a 30-year operations and maintenance agreement.

?The proposed purchase by. Bumipertiwi of the Project Interests is subject to the same regulatory and third party approvals. The purchase process by Keppel Energy Pte Ltd, KCL's wholly-owned subsidiary, and its joint venture partner, Electric Power Development Co., Ltd ("J-Power") with Powergen is still on-going,? Keppel said in its release to Singapore Stock Exchange.

Jawa Power is currently owned by Powergen (35 percent), Siemens Project Ventures GmbH (50 pecent), a subsidiary of Siemens Financial Services GmbH, and P.T. Bumipertiwi Tatapradipta (15 percent). (alex)