EGCO/ Star Energy acquires additional interest in Darajat geothermal project, Indonesia
Darajat III geothermal plant, Indonesia (source: Thorndon Cook)
Alexander Richter
28 Sep 2017
Electricity Generating Public Company Limited through affiliate Star Energy Geothermal has acquired shares in the Darajat Geothermal Project Indonesia, increasing its indirect ownership interest in the Unit 2 and 3 projects from 95% to 99.75%. This does not effect the 100% share in Unit 1 of Darajat by Star Energy.
In a release to the Stock Exchange of Thailand, the Electricity Generating Public Company Limited (“EGCO”) would like to inform the Stock Exchange of Thailand that Star Energy Geothermal (Salak – Darajat) B.V. (“SEGSD”), the affiliate of EGCO (20.07% indirect ownership interest), Star Energy Group Holdings Pte. Ltd. and AC Energy Holdings, Inc. have entered into Share Sale and Purchase Agreements with PT Austindo Nusantara Jaya Tbk (“ANJ”) on July 14, 2017 to acquire 95% share of PT Darajat Geothermal Indonesia (“DGI”). The share transfer was completed on September 27, 2017.
DGI holds the participating interest of 5% in Darajat Geothermal Project Unit 2 and Unit 3, which have total capacity of 216 MW. The transaction increases SEGSD’s indirect ownership interest in Darajat Geothermal Project Unit 2 and 3 from 95% to 99.75% while SEGSD remains to hold 100% indirect ownership interest in Darajat Geothermal Project Unit 1.
This investment is in line with EGCO’s strategic plan to expand its business in renewable power generation in South East Asia region and to enhance the company’s growth in the long term.
The investment was not a connected transaction. Also, under the Stock Exchange of Thailand’s requirements for notification on Acquisition and Disposal, the calculated transaction size based on criteria of net profit of EGCO’s reviewed and consolidated financial statements as at June 30, 2017 is 0.12% which is less than the 15% threshold. Therefore, the transaction does not require disclosure under the rules, procedures and disclosure of information concerning the acquisition and disposition of assets of listed companies. However, the disclosure is disseminated in the case of the investment in a joint venture company with a proportion of 10% or more of its paid up capital.
Source: Company Press Release
