Electricity Generating Public Company Limited or EGCO Group has strengthened its power business and expanded its other infrastructure business in ASEAN through the acquisition of a 30% interest in the infrastructure and utility company under PT Chandra Asri Petrochemical Tbk (Chandra Asri Group), Indonesia’s leading chemical and infrastructure solutions company. The USD194 million investment offered EGCO Group ownership in a variety of potential infrastructure and utility assets, including two operating gas-fired power plants, a water supply facility, and a tank rental and jetty management service company in Indonesia.
Mr. Thepparat Theppitak, EGCO Group’s President, stated that Phoenix Power B.V., the wholly owned subsidiary of EGCO domiciled in the Netherlands, entered into a share subscription agreement with PT Chandra Daya Investasi (CDI), on 12 December 2023 to invest in 30% equity interest of CDI with the committed investment amount of USD194 million. The transaction is expected to close by the end of this year following successful completion of all closing conditions.
CDI is a subsidiary of Chandra Asri Group, the largest integrated chemicals and infrastructure solutions company in Indonesia. CDI is an infrastructure and utility investment company with a portfolio of businesses, encompassing electricity generation and distribution, water supply, and tank and jetty management. All of CDI’s business and investment portfolio are situated in the strategic areas and the industrial estate in Cilegon and Serang city, Banten province, West Java Island, Indonesia, of which being the country’s primary and largest industrial estate with significant growing industrial demand.
CDI owns 2 operating natural gas-fired combined cycle power plants with a total capacity of 147MW with an exclusive electricity distribution right in Cilegon city. CDI also operates the only integrated water production and water treatment plant in Cilegon city. Moreover, the company has long-term sale contracts with diverse industrial customers, including reputable international and regional companies. CDI also owns RPU, an integrated intermediary tank rental and jetty management service company with a strategic location in Serang city.
“Following the transaction closing, EGCO Group will immediately recognize revenue from CDI, aligning with the short-term strategy by focusing to invest in high quality and profitable projects. The investment in CDI’s infrastructure and utility business will allow EGCO Group to seamlessly integrate into a promising market in Indonesia, where the economic outlook and energy demand are outstanding, with further potential expansion in ASEAN. The strategic partnership also marks a significant milestone for both companies, combining Chandra Asri Group’s expertise in the chemical and infrastructure sector with EGCO Group's proficiency in power and energy solutions,” said Mr. Thepparat.
About Chandra Asri Group
Chandra Asri Group is Indonesia's leading chemical company, providing infrastructure solutions and operating an integrated petrochemical plant that incorporates world-class, state-of-the-art technology and supporting facilities. Chandra Asri Group operates the country’s only Naphtha Cracker, Styrene Monomer, Butadiene, MTBE and Butene-1 plants, supported by core infrastructure assets encompassing energy, water and jetty & tank facilities, with new Chlor-Alkali – Ethylene Dichloride plant development on the horizon.
Chandra Asri Group is committed to establishing and integrating global partnerships while never compromising on service. Investing in workforce as well as engaging in equitable corporate responsibility programs is at heart of everything and is integral to Chandra Asri Group’s business. For more information, visit: www.chandra-asri.com.
About EGCO Group
EGCO Group has a total equity capacity of 7,023 MWe in operation and under construction. Total equity capacity from renewable energy is 1,418 MWe (equivalent to 20% of the total portfolio and growing). The RE portfolio includes biomass, hydropower, solar power, wind power, fuel cells, and battery storage. EGCO Group’s facilities and other projects are located in eight countries, namely Thailand, Lao PDR, the Philippines, Indonesia, Australia, South Korea, Taiwan and USA. In addition to power business, other energy-related businesses of the company include Thai Pipeline Network Co., Ltd. (TPN), EGCO Rayong Industrial Estate, Peer Power which is a new financial technology company, and Innopower which is a high tech start up incubator that EGCO Group owns together with its partners EGAT and RATCH Group. EGCO Group has been named to the Dow Jones Sustainability Index (DJSI) for the last four years and aims to achieve Net Zero within 2050.