ASIATODAY.JD, JAKARTA – Thai company, RATCH Group Public Company Limited has officially completed the acquisition of all Mitsui & Co shares in PT Paiton Energy, operator of the Paiton 7 & 8 Steam Power Plant in East Java, Indonesia.
The divestment of power generation assets with a total capacity of 2,045 megawatts (MW) or 2.04 gigawatts (GW) was completed on April 30 2024, European time.
Upon completion of the transaction, RH International (Singapore) Corporation Pte. Ltd. or RHIS, a subsidiary of the RATCH Group each owns 36.26% of shares in PT Paiton Energy and Minejesa Capital B.V, as well as 65% of shares in IPM Asia Pte.Ltd, a provider of power plant operation and maintenance services.
The remaining 9.255% shares were divested to PT Medco Daya Energi Sentosa (MDES), a wholly owned subsidiary of PT Medco Daya Abadi Lestari, as well as Paiton’s existing shareholder, PT Medco Energi Internasional Tbk. (MEDC).
RATCH Group is preparing an investment of around US$590.67 million to acquire 36.26% of Mitsui’s shares.
Meanwhile, Mitsui previously announced that the divestment value of the Paiton power plant assets reached around 109 billion yen or around US$698.89 million.
Chief Executive Officer of RATCH Group Public Company Limited, Nitus Voraphonpiput, said that the acquisition of Mitsui’s shares in Paiton would strengthen the company’s long-term commitment to developing business in Indonesia.
Apart from that, Nitus hopes that this investment can create new partnerships to explore investment opportunities in the generation sector and related businesses in Indonesia in the future.
“This investment directly increases the company’s commercial capacity to 9,038.04 MW and expands the operations and maintenance business, thereby adding economic value and financial strength to the company,” said Nitus in an official statement, Thursday, May 2 2024.
Nitus said that his company would support the performance and operations of PT Paiton Energy in terms of electricity production for security of energy supply in Indonesia.
Apart from that, the company will explore opportunities for cooperation in developing new renewable energy in the future.
To date, RATCH has ownership in gas, coal and two hydroelectric power plants in Indonesia, with a combined electricity capacity of 1,009.72 MW.
“The company sees Indonesia as a promising investment target, with confidence in sustainable economic growth there,” said Nitus.
The Paiton power plant consists of three power generating units, namely Unit 7 and Unit 8 with a capacity of 1,230 MW operating since 1999 and Unit 3 with a capacity of 815 MW which began operating in 20120.
The three Paiton power plant units have been guaranteed by a long-term electricity purchase agreement with PLN, the contract period of which will end in 2042.
Based on this transaction, the company will realize an equity capacity of 742 MW. (ATN)
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