EGCO Group Acquires 30% Interest in Infrastructure and Utility Business in Indonesia

Electricity Generating Public Company Limited (SET: EGCO) or EGCO Group has strengthened its power business and expanded its other infrastructure business in ASEAN through the acquisition of a 30% interest in the infrastructure and utility company under PT Chandra Asri Petrochemical Tbk Group (CAP), Indonesia’s leading chemical and infrastructure solutions company. The USD 194 million investment offered EGCO Group ownership in a variety of potential infrastructure and utility assets, including two operating gas-fired power plants, a water supply facility, and a tank rental and jetty management service company in Indonesia.

Mr. Thepparat Theppitak, EGCO Group’s President, stated that Phoenix Power B.V., the wholly owned subsidiary of EGCO domiciled in the Netherlands, entered into a share subscription agreement with PT Chandra Daya Investasi (CDI), on 12 December 2023 to invest in 30% equity interest of CDI with the committed investment amount of USD 194 million. The transaction is expected to close by the end of this year following successful completion of all closing conditions.

CDI is a subsidiary of CAP, the largest integrated chemicals and infrastructure solutions company in Indonesia. CDI is an infrastructure and utility investment company with a portfolio of businesses, encompassing electricity generation and distribution, water supply, and tank and jetty management. All of CDI’s business and investment portfolio are situated in the strategic areas and the industrial estate in Cilegon and Serang city, Banten province, West Java Island, Indonesia, of which being the country’s primary and largest industrial estate with significant growing industrial demand.

CDI owns 2 operating natural gas-fired combined cycle power plants with a total capacity of 147MW with an exclusive electricity distribution right in Cilegon city. CDI also operates the only integrated water production and water treatment plant in Cilegon city. Moreover, the company has long-term sale contracts with diverse industrial customers, including reputable international and regional companies. CDI also owns RPU, an integrated intermediary tank rental and jetty management service company with a strategic location in Serang city.

“Following the transaction closing, EGCO Group will immediately recognize revenue from CDI, aligning with the short-term strategy by focusing to invest in high quality and profitable projects. The investment in CDI’s infrastructure and utility business will allow EGCO Group to seamlessly integrate into a promising market in Indonesia, where the economic outlook and energy demand are outstanding, with further potential expansion in ASEAN. The strategic partnership also marks a significant milestone for both companies, combining CAP’s expertise in the chemical and infrastructure sector with EGCO Group’s proficiency in power and energy solutions,” said Mr. Thepparat.