Saratoga acquires 51% of Medco Power Indonesia

PT Saratoga Power will acquire a 51 percent stake in PT Medco Energi Internasional?s subsidiary PT Medco Power Indonesia (MPI) for US$112 million under a strategic partnership agreement signed in November.

Medco Energi?s president director Lukman A. Mahfoedz said in Jakarta on Friday that under the strategic partnership agreement, Saratoga would buy new shares totaling 51 percent of MPI?s enlarged shares.

He said that Saratoga had agreed to pay the acquisition in two stages comprising of $87 million this month and the remaining $25 million in January, next year.

Medco Power which operates two gas-fired power plants in Panaran, Batam and South Sumatra with a total capacity of 250 megawatt plans to build more power plants to increase the electricity output to 1,000 megawatt in 2015.

Medco Power will spend up to $600 million in the next five years in capital expenditure to finance the expansion projects, he said. (godang/giok/edi)