Marubeni buying 43% stake in YTL Jawa Power for US$224mil

Friday July 8, 2011

PETALING JAYA: Marubeni Corp will acquire a 42.86% equity stake in YTL Jawa Power Holdings BV, which is a wholly-owned subsidiary of YTL Power International Bhd, for US$224mil (RM680.96mil).

Upon completion of the acquisition, YTL Power is expected to realise a gain on disposal of RM210mil.

The share purchase agreement will enable Marubeni to co-invest in YTL Jawa Power Holdings BV, the company which holds YTL Power's 35% equity interest in PT Jawa Power, the owner of a 1,220 megawatt power station in Indonesia.

The acquisition by Marubeni will be undertaken via its wholly-owned subsidiary, Aster Power Holding BV, YTL Power said in a statement yesterday.

YTL Power executive director Datuk Yeoh Seok Hong said the transaction would enable Marubeni to co-invest with the company and will form the basis of a strategic partnership going forward.

“Marubeni is a strong and well-respected player in the international utilities market and this collaboration will enable YTL Power and Marubeni to cooperate on potential investments and the development of future opportunities in the global utilities industry,” he said in the statement.

PT Jawa Power owns a coal-fired power generation plant with an installed capacity of 1,220 megawatts located at the Paiton Power Generation Complex in Probolinggo, in East Java, Indonesia.

Chief operating officer (power projects and infrastructure division of Marubeni) Masumi Kakinoki said through the transaction, Marubeni would build a firm partnership with YTL as a strategic partner for future development not only in Asia but also all over the world.

“Marubeni intends to collaborate with YTL in multiple areas of infrastructure such as power, water and transportation for the further growth of Marubeni and YTL as global utility players,” he said.

YTL Power said in the statement that its growth strategy was to invest in long-term geographically diverse infrastructure assets, while concurrently achieving synergies across its portfolio of utility businesses.

“The YTL Power group is continuously seeking to develop and expand its presence in utility businesses both in Malaysia and offshore.”

YTL Power owns 100% stakes in Wessex Water Limited, a water and sewerage operator in Britain, PowerSeraya Ltd, which has a total licensed capacity of 3,100 megawatts representing approximately 25% of Singapore's licensed generation capacity and operates multi-utility businesses, and YTL Power Generation Sdn Bhd, an independent power producer which owns power stations with a combined generation capacity of 1,212 megawatts in Malaysia.

It also has an indirect 33.5% investment in ElectraNet Pty Ltd, the company which owns and operates the power transmission grid for South Australia under a 200-year concession.

By the star business news