Electricity Generating Public Company Limited or EGCO Group announced the successful disposal of its entire shares in three geothermal power plants in Indonesia to Star Energy Group Holdings Pte. Ltd. EGCO Group will use the proceeds from the divestment transaction for new investment opportunities in the future, especially in renewable and clean energy projects with superior growth potential.
Mr. Thepparat Theppitak, EGCO Group’s President, said, “Phoenix Power B.V. (“PP”) a wholly owned subsidiary of EGCO, entered into the Sales and Purchase of Shares Agreement with Star Energy Group Holdings Pte. Ltd. to dispose 20% of issued and paid up ordinary shares in Star Energy Geothermal Pte. Ltd.(“SEG”) and 30.25% of issued and paid-up ordinary shares in Star Phoenix Geothermal JV B.V. (“SPG”), on 16 November 2022. Subsequently, the transaction was successfully completed on 22 December 2022 with total consideration of USD 485 million (equivalent to approximately THB 16,780 million).”
EGCO Group started its investment in Indonesia since 2014 through investment in SEG and SPG, owned 20% and 20.07% effective stakes in SEG Wayang Windu (“SEGWW”) and SEG Salak-Darajat B.V. (“SEGSD”). SEGWW owns and operates “Wayang Windu” geothermal power plant with a total installed capacity of 227MW situated in West Java, Indonesia. SEGSD owns and operates two geothermal power plants entitled “Salak” and “Darajat” located in West Java, Indonesia. The “Salak” geothermal power plant has a total installed capacity of 376.8MW (Steam 180MW and Power 196.8MW). The “Darajat” geothermal power plant has a total installed capacity of 271MW (Steam 55MW and Power 216MW. These geothermal power plants supply electricity to PT PLN (Persero), a state-owned enterprise and sole off-taker and distributor of Indonesian power market, on a long term take-or-pay basis.
“The decision to sell shareholding in those geothermal power plants is part of EGCO Group’s strategy to rationalize the company’s asset portfolio. EGCO Group will be able to gain profit from the share disposal and strengthen its financial position to support new investment opportunities in the future, especially in renewable and clean energy projects with superior growth potential”, added Mr. Thepparat.