KUALA LUMPUR: Kejuruteraaan Asastera Bhd’s (KAB) subsidiary KAB Energy Holdings Sdn Bhd has entered into a time period sheet settlement with Sarawak Cable Bhd to amass your complete issued share capital of PT Inpola itra Elektrindo (PT IME).
In an announcement, KAB mentioned PT IME has an current power buy settlement to produce electrical energy to PT Perusahaan Listrik Negara, the state-owned utility firm in Indonesia, for a concession interval of 20 years.
It operates a mini hydro power plant, named Kombih III, positioned at Sungai Kombih in North Sumatera.
The plant has an put in capability of 11-megawatt and achieved industrial operations on 12 October 2021.
According to KAB, the acquisition consideration will likely be RM10,000. Meanwhile, PT IME will likely be launched from all liabilities and encumbrances upon the total settlement of the acquisition consideration and excellent debt of as much as RM61.5mil.
“This is our first foray into Indonesia, in addition to our maiden enterprise into the hydro power sector.
“We are excited to embark on this work trip and see this proposed acquisition of PT IME as being in line with the group’s enterprise path to increase the revenue stream and have a robust foothold in our inexperienced vitality options enterprise, notably in the renewable vitality sector,” mentioned KAB managing director Datuk Lai Keng Onn.
He added that the the upper margins of hydropower belongings will yield very worthwhile returns, and supply a secure and sustainable long-term recurring revenue for KAB over the following 20 years.
The asset is projected to contribute not less than RM270mil income to the group over the concession interval.
Kombih III is anticipated to generate about 49,056,000 kWh every year, which can offset 26,784 tonnes of CO2 emission.