Mudajaya acquires interest in W. Papua power plant project
Wednesday, April 6 2016 - 12:55 AM WIB
Malaysia?s Mudajaya Group Berhad signed an agreement on Tuesday to acquire a 73.69 percent equity interest in PT Harmoni Energi Indonesia Manokwari (HEIM), which is developing a coal-fired power plant in West Papua.
Mudajaya said in a statement that its indirect 95 percent owned subsidiary PT Mudajaya Energi Indonesia signed the conditional shares shale and purchase agreement (CSPA) with PT HEIM and the latter?s parent firm PT Indomuda Satria Internusa.
The statement said that PT HEIM is a special purpose vehicle which has a Power Purchase Agreement (PPA) with Indonesian state-owned electricity company PT PLN Papua and West Papua Regional Branch for the development of a 2x7 MW coal-fired steam power plant on a Build-Operate-Own basis for 25 years from the Commercial Operation Date in Manokwari, West Papua of Indonesia.
The financial close pursuant to the PPA is October 26, 2016, the statement added.
Mudajaya said the proposed acquisition is subject to certain conditions precedent (CPs) in the CSPA which include a satisfactory result of financial, legal, technical and commercial due diligence exercises (collectively referred to as the due diligence exercise.
The consideration sum for the proposed acquisition will be agreed by all parties upon satisfactory completion of the CPs and due diligence exercise, it added.
The CSPA is not subject to the approvals of the shareholders of Mudajaya or any government authorities in Malaysia, the company said.
Editing by Reiner Simanjuntak