(EnergyAsia, July 13 2011, Wednesday) — Japan’s Marubeni Corporation has agreed to pay US$224 million for a 42.86% stake in YTL Jawa Power Holdings BV which owns a 35% equity interest in Indonesia’s PT Jawa Power.
Malaysia’s YTL Power International Berhad, which sold the stake to Marubeni’s wholly-owned subsidiary, Aster Power Holding BV, said Jawa Power owns a 1,220-megawatt coal-fired power plant at the Paiton Power Generation Complex in the district of Probolinggo, in East Java. YTL Power acquired its 35% stake in 2004.
Jawa Power supplies power to PT PLN (Persero), the Indonesian state-owned integrated utility, through a 30-year power purchase agreement. The plant is operated and maintained by PT YTL Jawa Timur, a wholly-owned subsidiary of the YTL Power Group.
Yeoh Seok Hong, YTL Power’s executive director, said: “Marubeni is a strong and well-respected player in the international utilities market and this collaboration will enable YTL Power and Marubeni to cooperate on potential investments” and develop future opportunities in the global utilities industry.
Masumi Kakinoki, chief operating officer at Marubeni’s Power Projects & Infrastructure Division, said:
“Through this transaction, Marubeni will build a firm partnership with YTL as a strategic partner for future development not only in Asia but also all over the world. Marubeni intends to collaborate with YTL in multiple areas of infrastructure such as power, water and transportation for the further growth of Marubeni and YTL as global utility players.”
Analysts at Malaysian research house ECMLibra said YTL Power (YTLP) is selling an effective 15% interest in Jawa Power, and booking a gain of RM210.1 million.
In a report, ECMLibra said: “We believe this could mark the start of a long-term strategic partnership between YTLP and Japan’s Marubeni Corporation to buy power assets worldwide.”
YTL Power owns 100% stakes in Wessex Water Limited, a UK water and sewerage operator, PowerSeraya Limited, which has a total licensed capacity of 3,100 megawatts representing approximately 25% of Singapore’s licensed generation capacity and operates multi-utility businesses, and YTL Power Generation Sdn Bhd, an independent power producer which owns power stations with a combined 1,212 of generation capacity in Malaysia.
YTL Power also has an indirect 33.5% investment in ElectraNet Pty Ltd, which owns and operates the power transmission grid for the state of South Australia under a 200-year concession.