The decision to sell shareholding in geothermal power plants is part of EGCO Group’s strategy to rationalize the company’s asset portfolio. EGCO Group plans to use the proceeds from the divestment transaction to strengthen its capital structure and to develop new investment opportunities, especially in renewable energy projects with higher returns and superior growth potential.
EGCO announced the successful disposal of its entire shares in three geothermal power plants in Indonesia to Star Energy Group Holdings Pte. Ltd. The transaction was successfully completed on 22 December 2022 with total consideration of USD485 million.
Phoenix Power B.V. a wholly owned subsidiary of EGCO, entered into the Sales and Purchase of Shares Agreement with Star Energy Group Holdings Pte. Ltd. to dispose 20% of issued and paid up ordinary shares in Star Energy Geothermal Pte. Ltd.(“SEG”) and 30.25% of issued and paid-up ordinary shares in Star Phoenix Geothermal JV B.V., on 16 November 2022.
The sale include 20% and 20.07% effective stakes in SEG Wayang Windu (“SEGWW”) and SEG Salak-Darajat B.V. (“SEGSD”). SEGWW owns and operates Wayang Windu geothermal power plant with a total installed capacity of 227MW situated in West Java, Indonesia. SEGSD owns and operates two geothermal power plants entitled Salak and Darajat located in West Java, Indonesia. Salak geothermal power plant has total installed capacity of 376.8MW and Darajat geothermal power plant has a total installed capacity of 271MW