Indonesian petrochemical firm to acquire two third stake in Star Energy

Indonesian petrochemical firm to acquire two third stake in Star Energy Wayang Windu geothermal power complex, Indonesia (source: flickr/ Andri Suprihadi, creative commons)
Alexander Richter 4 Aug 2017

A Thai petrochemical company Barito Pacific is preparing the acquisition of a 66 % stake in Star Energy valued at $700 million.

As reported yesterday, Indonesia-based petrochemical firm Barito Pacific is preparing to spend $700 million for the acquisition of a 66 percent stake in Indonesian Star Energy Group.

Local media report, that Barito has already paid about $300 million as security for the deal with still needing to raise $400 million for the rest.

The acquisition is expected to be closed by the first quarter of 2018.

The Barito team and Star Energy have signed a memorandum of understanding. BCPG, a listed renewable energy firm from Thailand, secured approval for the acquisition of a 33.3% stake in Star Energy, valued at $358 million, as we reported before.

Star Energy has three geothermal power plants in Indonesia The largest plant is located in Sukabumi City in West Java with an installed capacity of 377 MW. The other two include the 227-MW geothermal power plant at Wayang Windu and the 271-MW Darajat project in Garut and Bandung, which the firm acquired from Chevron along with operations in the Philippines – including Tiwi-Makban geothermal field that is currently producing approximately 326 MW of steam.

For the acquisition of Chevron’s geothermal operations in Indonesia, Star Energy Group Holdings and Star Energy Geothermal holds majority ownership (68.31% ownership), followed by AC Energy (19.3%) and EGCO (11.89%).

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Source: Deal Street Asia