YTL Power sees significant contribution from Indonesian power plant acquisition deal
Saturday, December 11 2004 - 01:02 AM WIB
YTLP had entered into a share sale and purchase agreement with PT Bumipertiwi Tatapradipta last May to acquire from the latter a 35 per cent equity and certain loan stock interests in Jawa Power for RM530 million.
Bumipertiwi, which exercised its pre-emption rights this year, bought the stake from E.ON UK plc.
YTLP, the third-largest power producer in Malaysia, had also spent RM13.7 million to buy the entire stake in PT Powergen Jawa Timur, which operates the Indonesian power station under a 30-year agreement.
?The transaction takes YTLP into a new country, Indonesia and this continues our strategy of combining investments in utilities in lower risk markets such as the UK with investments in Asia growth markets,? YTLP managing director Tan Sri Francis Yeoh said.
Yeoh was speaking to reporters at a ceremony marking the completion of the Indonesian?s power entity?s purchase in Kuala Lumpur Friday.
He views the acquisition as a rare opportunity to invest in a well-structured operating asset that is past the construction stage and is already generating profits.
Jawa Power owns a 1,220 megawatts coal-fired power station in East Java. Commissioned in 2000, the facility is the second largest independent power producer in Indonesia.
The company, which supplies its entire generated power to the country?s state-owned integrated utility PT PLN under a 30-year power purchase deal, burns coals from three mines in Kalimantan.
With Jawa Power under YTLP?s roof, the latter?s power generation capacity in Malaysia and abroad will reach around 2,500 megawatts.(*)