Marubeni acquires stake in Paiton

Malaysian frim YTL Power International Berhad and Japan?s Marubeni Corporation entered Thursday into a share purchase agreement enabling Marubeni to co-invest in YTL Jawa Power Holdings BV, the company which holds YTL Powers 35% equity interest in PT Jawa Power, the owner of a 1,220-MW coal-fired power plant in Paiton complex, East Java.

Under the agreement, Marubeni will acquire a 42.86% equity stake and other company interests in YTL Jawa Power Holdings BV, which is a wholly-owned subsidiary of YTL Power, for US$224 million.

?This transaction will enable Marubeni to co-invest with us and will form the basis of a strategic partnership going forward. Marubeni is a strong and well-respected player in the international utilities market and this collaboration will enable YTL Power and Marubeni to cooperate on potential investments and the development of future opportunities in the global utilities industry,? DatoYeoh Seok Hong, Executive Director of YTL Power, said.

YTL Power acquired its 35% stake in 2004. PT Jawa Power supplies power to PT PLN (Persero) under a 30-year power purchase agreement. Operation and maintenance for the plant is carried out by PT YTL Jawa Timur, a wholly-owned subsidiary of the YTL Power Group. (denny)