JAKARTA (RambuEnergy.com) – Diversified group PT Barito Pacific Tbk has strengthened its geothermal energy through the acquisition of 66.67% shares of Star Energy Group Holdings Pte Lte, the operator of a number of geothermal assets in the country.
On Thursday, the company’s shareholders have approved the board’s move to acquire the shares. Through the affiliated acquisition, Star Energy will be under the control of Barito Pacific, which was found by tycoon Prajogo Pangestu.
The move follows the move by the key shareholders earlier to consolidate petrochemical firm PT Chandra Asri Petrochemical Tbk under the holding firm Barito Pacific.
President Director of Barito Pacific Agus Salim Pangestu, a son of Prajogo, said in term of EBITDA, the contribution of Star Energy would be nat far different with the contribution of Chandra Asri to the parent firm.
Currently, Barito Pacific holds 41.51% shares of Chandra Asri, Indonesia’s largest petrochemical company.
To fund the acquisition, Barito Pacific is in the process of launching rights issue, with an aim to generate US$1 billion. As much as US$755 million of the rights issue proceeds will be used to acquire Star Energy shares and the remaining funds will be used for strengthening the working capital of the company (Barito Pacific) and its subsidiaries.
In December 2016, Star Energy Consortium won a bid to acquire the wholly-owned subsidiaries of Chevron Corporation (NYSE:CVX), namely Chevron’s Indonesian and Philippines Geothermal assets. These two assets have delivered reliable energy to support the needs of Asia-Pacific’s growing economies.
In Indonesia, Chevron subsidiaries operate the Darajat and Salak geothermal fields in West Java.
Chandra Asri is currently in the expansion mode.
A synthetic rubber processing factory being developed by PT Synthetic Rubber Indonesia, a joint venture of Indonesia’s Chandra Asri Petrochemical and French tyre maker Michelin, is scheduled to begin commercial operation in the second quarter of 2018, company corporate secretary Suryandi said on Monday (Nov 6).
The JV firm invested US$570 million to develop the plant, with a target to produce 120,000 tonnes of synthetic butadiene rubber and solution styrene butadiene rubber every year. Globally, Michelin will operate three synthetic rubber plant once this project is completed.
The shareholding composition of the joint venture is Michelin and PT Petrokimia Butadiene Indonesia (PBI), a subsidiary of Chandra Asri, by 55% and 45% respectively. (*)