Indonesian petrochemical firm Barito Pacific is readying $700 million to acquire 66 per cent stake in Star Energy Group, an affiliated entity controlled by tycoon Prajogo Pangestu.
According to a report by local media KONTAN, Barito has transferred $300 million to secure the deal while looking for the remaining $400 million. It is not clear how Barito will raise the amount needed to complete the transaction.
Barito Pacific president director, Agus Salim Pangestu, expects the acquisition to close by the first quarter of 2018.
“The acquisition process must continue,” Pangestu told the site.
The firm had first announced its plans to acquire “majority shares” in Star Energy late last year. The management team had said that it had signed a memorandum of understanding with Star Energy, which was to be followed by a conditional sale and purchase agreement.
BCPG, a Thai listed renewable energy firm, had secured approval to acquire 33.3 per cent stake in Star Energy. The deal was valued at up to $357.5 million, with the transaction expected to be finalised in the second quarter of this year.
Following the acquisition, BCPG will hold stakes in three geothermal power plants in Indonesia with a combined production capacity of 182 MW.
The three projects are top 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%).
Thanks to these assets, Star Energy is now one of the premium-valued energy companies in the region.
Barito Pacific was established as PT Bumi Raya Pura Mas Kalimantan in 1979. Aside from Chandra Asri, Barito Pacific owns many subsidiaries in different industries, such as PT Royal Indo Mandiri in the crude palm oil industry and PT Griya Idola in the property sector.