Egco buys 30% stake in Indonesian company

SET-listed Electricity Generating (Egco), a power generation arm of state-run Electricity Generating Authority of Thailand, has acquired a 30% share in Indonesia-based PT Chandra Daya Investasi for US$194 million to strengthen its power business and venture into the infrastructure sector in Asean.

PT Chandra Daya Investasi (CDI) is a subsidiary of PT Chandra Asri Petrochemical Tbk Group (CAP), the largest integrated chemical and infrastructure solution provider in Indonesia.

The share purchase was made through Egco’s wholly-owned subsidiary Phoenix Power BV, which is registered in the Netherlands. The transaction is expected to be completed by the end of this year.

“The company will immediately recognise revenue from CDI, aligning with our short-term strategy by focusing on investment in high-quality, profitable projects,” said Thepparat Theppitak, president of Egco.

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.

The firm operates businesses in strategic areas and an industrial estate in Cilegon and Serang cities in Banten province, West Java.

The industrial estate is the largest in the country and demand has posted significant growth.

CDI also owns two natural gas-fired combined-cycle power plants with a total capacity of 147 megawatts. The company has exclusive electricity distribution rights in Cilegon city.

CDI operates the only integrated water production and treatment plant in Cilegon. Moreover, the company has long-term sales contracts with diverse industrial customers.

In addition, CDI owns RPU, an integrated intermediary tank rental and jetty management service company, which is located in Serang.

“The investment in CDI’s infrastructure and utility business will allow Egco to seamlessly integrate into a promising market in Indonesia, where the economic outlook and energy demand are outstanding, with further potential expansion in Asean,” said Mr Thepparat. “The strategic partnership also marks a significant milestone for both companies, combining CAP’s expertise in the chemical and infrastructure sector with Egco’s proficiency in power and energy solutions.”