Indonesia: Medco takes over Saratoga Power for $129m; Barito Pacific sets up JV with Thai SCG

Indonesia
Photo: REUTERS/Garry Lotulung

Indonesia’s publicly-listed firm Medco Energi International has bought a 77.68 per cent stake in Saratoga Power from the Saratoga Group for $129.2 million.

In another development, petrochemical giant Barito Pacific has joined hands with Thailand-based Siam Cement Group (SCG) to set up a JV firm, SCG Barito Logistics.

Saratoga Power takeover

Medco Energi has acquired 77.68 per cent of Saratoga Power for $129.2 million, the company announced in a filing today. The remaining 11.38 per cent will still be held by International Finance Corporation (IFC).

“The transaction will expectedly contribute a positive impact to the company’s business and operational,” Medco Energi management team said, adding that the corporate action does not fall under material transaction category as stipulated by Indonesian law.

Established in 2004, MPI is the operator of nine power plants with a total gross generating capacity of 400.7 MW. Apart from developing and operating power plants, it provides engineering, procurement, and construction (EPC) and operations and management services.

SCG Barito Logistics formed

Magna Resources Corporation-subsidiary Barito Pacific and Thailand’s SCG have agreed to set up a joint venture firm – SCG Barito Logistics – that would commence operations mid-October. The firm will be responsible for delivery of petrochemical products made by Chandra Asri Petrochemical (CAP), a company jointly owned by Barito Pacific and SCG.

CAP recently completed a $378 million (Rp 5 trillion) rights issue in September, raising funds to strengthen the company’s capital expenditure (capex), increase production capacity, and diversifying products.

Founded in 1979, Barito Pacific operates as a diversified resource-based company primarily in mining and energy sectors in Asia, US, and globally. The firm produces petrochemical products including ethylene, propylene, crude c4, and pyrolysis gasoline. In addition, the company operates industrial timber estates; manages properties; and develops palm oil plantations.

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