Mudajaya's unit to acquire 73.69% in Indonesian SPV

by **Cals** Wed 06 Apr 2016, 01:31

Mudajaya's unit to acquire 73.69% in Indonesian SPV

By Meena Lakshana / theedgemarkets.com | April 5, 2016 : 9:55 PM MYT

KUALA LUMPUR (April 5): Mudajaya Group Bhd's 95%-owned subsidiary PT Mudajaya Energi Indonesia is acquiring a 73.69% stake in special purpose vehicle (SPV) PT HEIM (HEIM), which holds a power purchase agreement (PPA) for the development of a coal-fired steam power plant in West Papua of Indonesia.

In a filing with Bursa Malaysia, Mudajaya said Mudajaya Energi entered into a conditional shares sale and purchase agreement (CSPA) with PT Indomuda Satria Internusa (ISI) and PT Harmoni Energi Indonesia Manokwari to acquire the stake.

Mudajaya said the consideration sum for the proposed acquisition will be agreed by all parties, upon satisfactory completion of the conditions precedent and due diligence exercise.

The proposed acquisition is subject to certain conditions precedent in the CSPA, which include a satisfactory result of financial, legal, technical and commercial due diligence exercises, the filing stated.

HEIM, a subsidiary of ISI, holds a PPA with PT PLN (Persero) Wilayah Papua Dan Papua Barat for the development of a 2x7 megawatt (MW) coal-fired steam power plant on a build-operate-own basis for 25 years in Manokwari, West Papua of Indonesia.

Mudajaya said the financial close pursuant to the PPA is Oct 26, 2016.

The CSPA is not subject to the approvals of the shareholders of Mudajaya or any government authorities in Malaysia, the filing read.

Mudajaya said the proposed acquisition, if completed, is expected to contribute positively towards the earnings and net assets of the group, in future financial years.

Mudajaya shares closed unchanged at RM1.37 today, for a market capitalisation of RM737.61 million.