OREANDA-NEWS. Nebras Power Q.S.C (Nebras) announced the signing of a binding agreement to acquire ENGIE’s stake of up to 35.5% in PT Paiton Energy (“Paiton”).

The acquisition of ENGIE’s stake in Paiton provides Nebras with access to the highly attractive Indonesian power market and 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 regions.

Paiton is well positioned to benefit from favourable fundamentals of the Indonesian power market. Paiton is Indonesia’s largest IPP 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. Including the first super critical IPP in Indonesia, Paiton has exceptional experience and know how 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 ofO&M capabilities, which will bring supplementary capabilities and technology know how to Nebras.

Closing of the transaction is expected within the second half of 2016 subject to customary approvals and regulatory consents.

Commenting on the transaction, Mr. Fahad Hamad Al-Mohannadi, Chairman of the Board of Nebras 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.”

Mr. Khalid Mohammed Jolo, CEO of Nebras,further stated: “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.”

Commenting on the deal, Mr. Faisal Alsiddiqi, Business Development Director of Nebras said, “This opportunity provides Nebras access to a sizable 2 GW state-of-the-art power plant with a long term PPA and a strong operational track record”.