Page 51 - Plastcs News August 2017

BuSINESS NEWS

Barito Pacific to acquire 66% stake in Star Energy Group

ndonesian petrochemical firm Barito Pacific is readying valued energy companies in the region. Barito Pacific
IUS$700 million to acquire 66% stake in Star Energy Group, was established as PT Bumi Raya Pura Mas Kalimantan in
an affiliated entity controlled by tycoon Prajogo Pangestu. 1979. Aside from Chandra Asri, Barito Pacific owns many
According to a report by local media KoNTAN, Barito has subsidiaries in different industries, such as PT Royal Indo
transferred US$300 mln to secure the deal while looking Mandiri in the crude palm oil industry and PT Griya Idola
for the remaining US$400 mln. in the property sector.
dealstreetasia.com reports that it is not clear how Barito
will raise the amount needed to complete the transaction.
HPCL mulls acquisition of 2
ONGC subsidiaries

tate-run Hindustan Petroleum Corp (HPCL) is
Smulling acquisition of two subsidiaries of oil and
Natural Gas Corp (oNGC) before the takeover. The two
ONGC units are Mangalore Refinery and Petrochemicals
(MRPL) and oNGC Petro Additions (oPaL).

This move is to consolidate all of oNGC’s downstream
operations in HPCL, leaving it free to focus on
Barito Pacific president director, Agus Salim Pangestu, exploration and production. HPCL will look after
expects the acquisition to close by Q1-2018. “The refining and marketing.HPCL already has a 16.96%
acquisition process must continue,” Pangestu told the site. stake in MRPL, in which oNGC holds 71.63%. oNGC
The firm had first announced its plans to acquire “majority has a 49.36% stake in oPaL with GAIL holding 49.21%.
shares” in Star Energy late last year. The management The government has already begun the process of
team had said that it had signed a memorandum of appointing transaction advisors for the oNGC-HPCL
understanding with Star Energy, which was to be followed
by a conditional sale and purchase agreement. BCPG, a
Thai listed renewable energy firm, had secured approval
to acquire 33.3 per cent stake in Star Energy. The deal
was valued at up to US$357.5 mln, with the transaction
expected to be finalised in the second quarter of this year.
Following the acquisition, BCPG will hold stakes in three
geothermal power plants in Indonesia with a combined
production capacity of 182 MW. The three projects are
top geothermal power plants in Indonesia. The largest
plant is located in Sukabumi City in West Java with an
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, which the deal and will seek an independent valuation of its
firm acquired from Chevron along with operations in the stake in the refiner. The government currently holds
Philippines – including Tiwi-Makban geothermal field that a 51.1 % stake in HPCL.
is currently producing approximately 326 MW of steam.
For the acquisition of Chevron’s geothermal operations Earlier this week, the Cabinet Committee on Economic
in Indonesia, Star Energy Group Holdings and Star Energy Affairs (CCEA) accorded “inprinciple approval” for
Geothermal holds majority ownership (68.31% ownership), the strategic sale of its stake, “along with transfer of
followed by AC Energy (19.3%) and EGCo (11.89%). Thanks management control” to oNGC. HPCL will become a
to these assets, Star Energy is now one of the premium- subsidiary of oNGC once this deal takes place.

51 Aug ust 2017 | Plastics News