SINGAPORE (Yosefardi) – SGX Main Board listed ISDN Holdings Limited, an integrated engineering solutions provider for diverse industries, has through its wholly owned subsidiary, Aenergy Holdings Company Limited, today acquired two Indonesian-based energy-related companies – PT Alabama Energy and PT Prima Paluta Energy.
It has signed a sale and purchase agreement to acquire 80% equity of both companies from their vendors, Mr Charles D. Marpaung and Ms Rahmaniwati Sulaiman – who prior to the sale were joint and equal owners of both companies.
This latest development will cement ISDN’s footprint in the vast Indonesian energy market where hydro-electric has been identified as one of the key energy sources to meet the rising demand of electricity for residential, business and industrial consumers in urban and suburban areas of the archipelago.
ISDN Managing Director and President, Mr Teo Cher Koon said, “Sumatra is one of Indonesia’s biggest island and its potential is enormous. Inhabited by about 13 million people, it offers huge opportunities in energy production as the territory ramps up its electricity sources in tandem with population and economic growth.”
PT Alabama Energy (PTAE) is primarily involved in the business of building, owning and operating hydropower plants and related businesses.
ISDN will pay US$900,000 for its 80% stake in PTAE that will be funded by cash using its internal reserves, in a series of agreed milestone payments. The remaining 20% of PTAE will continue to be owned by Mr Parpaung and Ms Sulaiman in equal portions.
Similarly, PT Prima Paluta Energy (PTPPE) is primarily involved in the business of building, owning and operating hydropower plants and related businesses.
The 80% ownership in PTPPE will cost ISDN USD $1 million that will be funded by the company’s cash reserves to be paid out in a series of agreed milestones. The remaining 20% of PTPPE will remain with Mr Parpaung and Ms Sulaiman.