Qatari joint stock company Nebras Power has signed a binding agreement to acquire ENGIE’s stake of up to 35.5% in PT Paiton Energy.
The acquisition of ENGIE’s stake in Paiton provides Nebras with access to the highly attractive Indonesian power market. It is in line with Nebras’s stated objective “to establish itself as a leading international power company and increasing its imprints in the world’s energy sector via actively growing its portfolio in both conventional and renewable power generation assets across South East Asia, Europe and Mena (Middle East and North Africa) regions.”
Paiton is well positioned to benefit from favourable fundamentals of the Indonesian power market. It is Indonesia’s largest IPP (independent power producer) with over 2,000 MW of operating base accounting for a sizable portion of capacity in Indonesia. It represents 4% of Indonesia’s total installed capacity. It has exceptional experience and knowhow in the region.  Paiton enjoys a long term power purchase agreement with PLN.
Together with Paiton, Nebras has also acquired a stake in the O&M company that operates Paiton. Led by an experienced operating team, the O&M company has a strong track record, which will bring supplementary capabilities and technology knowhow to Nebras. The closing of the transaction is expected within the second half of 2016 subject to customary approvals and regulatory consents.
On the transaction, Nebras chairman Fahad Hamad al-Mohannadi said, “The acquisition of ENGIE’s Paiton stake is a value enhancing and forward-looking initiative for Nebras.  We have been clear about our intention to focus on growth initiatives and building our international presence making targeted acquisitions in South East Asia, Europe, and Mena region, as well as forming major energy services partnerships.  This transaction will complement our strategy of pursuing growth platforms to provide scale and revenue diversity.”
Nebras CEO Khalid Mohammed Jolo said, “We have carefully reviewed the Paiton operations and concluded that Paiton offers a compelling investment opportunity for us to get access to the highly attractive Indonesian power market. Nebras looks forward to the opportunities this transaction provides and working closely with the consortium partners which includes, among others, Mitsui and TEPCO.”