Resources Alam to acquire Khatulistiwa Hidro Energi
Tuesday, October 21 2014 - 12:37 AM WIB
IDX-listed Resources Alam Indonesia Tbk (RAI) announced on Monday it has agreed to acquire some stake in PT Khatulistiwa Hidro Energi (KHE), a move that will allows it to control a small hydropower plant in Cicatih, West Java.
KHE is a 95 percent owner of power plant firm PT Bias Petrasia Persada, which on June 9, 2012, signed a Power Purchasing Agreement (PPA) with state owned electricity firm PT Perusahaan Listrik Negara (PLN) for the 6,400 kWh hydropower plant in Cicatih.
KHE is 90 percent owned by PT Bumi Raya Utama and 10 percent by businessman Hendro Martowardojo.
Bumi Raya and Hendro agreed to sell ?some of their respective interest? in KHE to RAI, according to the press statement.
?However, the percentage of interests to be acquired as well as the value of the transaction will be later reported pending the completion of the calculation of the fair value and fairness opinion by independent assessor,? RAI said.
The firm said it is interested in hydropower business due to the government?s policy of promoting the development of renewable energy, such as hydropower. Moreover, the government has increased PLN?s purchasing price of hydropower from Rp 656 per kWh to 1,075 kWh .
Editing by Johannes Simbolon