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Reported today from Thailand, listed renewable energy company BCPG has announced the approval of its Board of Directors for the acquisition of a 33% stake in Indonsia-based Star Energy Group Holding.
The deal is valued at up to $357.5 million. The transaction is expected to be finalised in the second quarter of this year. Bundit Sapianchai, president of BCPG, said that this investment creates the opportunity to expand the company’s renewable energy business. He stated, in the filing, the company saw a big growth opportunity in Indonesia given the country’s high demand for electricity.
With the acquisition, BCPG will hold stakes in the three geothermal power plants of Star Energy in Indonesia. The stakes held by BCPG will have a combined power generation capacity of 182 MW. The largest plant is located in Sukabumi City in West Java with the installed capacity of 377 MW. The other two include the 227-MW geothermal power plant at Wayang Windu and the 271-MW Darajat project in Garut and Bandung. The company will source the acquisition through loan and internal cash flows.
Source: Deal Street Asia