EGCO Group acquires 30% interest in infrastructure and utility business in Indonesia

Editorial Staff

EGCO Group acquires 30% interest in infrastructure and utility business in Indonesia

Electricity Generating Plc (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 US$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, said 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 US$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.

CAP is Indonesia's leading chemical company, providing infrastructure solutions and operating an integrated petrochemical plant that incorporates world-class, state-of-the-art technology and supporting facilities. CAP operates the country’s only Naphtha Cracker, Styrene Monomer, Butadiene, MTBE and Butene-1 plants, supported by core infrastructure assets encompassing energy, water and jetty & tank facilities, with new Chlor-Alkali – Ethylene Dichloride plant development on the horizon.