Kejuruteraan Asastera (KAB), a leading one-stop engineering and energy solutions provider, is pleased to announce that the group’s wholly-owned subsidiary KAB Energy Holdings (KABEH) has received approval from shareholders in today’s extraordinary general meeting (EGM) for the proposed acquisition of PT Inpola Mitra Elektrindo (PT IME) which owns a mini-hydropower plant in conjunction with the execution of SPA as per KAB announcement on the 29 July 2022.
PT IME owns and operates an 11 megawatt mini-hydropower plant in the District of Pakpak Bharat, North Sumatera, Indonesia. The power plant was developed, owned, and operated by PT IME under a Power Purchase Agreement (PPA) with PT Perusahaan Listrik Negara (PLN), the state-owned electricity company of Indonesia with an initial concession period of 20 years from the commercial operation date, which was achieved on 12 October 2021.
Upon completion of the proposed acquisition, it is expected to provide KAB with a stable and recurring income stream from PT IME’s mini hydropower plant, as per the PPA with PLN.
KAB Group Managing Director Dato’ Lai Keng Onn, said the move is in line with their overall business strategy in expanding their suite of solutions for the SES segment to meet customers’ every-growing needs.
“Moving forward, KAB is committed to pursuing larger and more ambitious sustainable energy projects to further drive the growth of the SES segment as global demand for such solutions continue to rise. The Group anticipates that the SES segment would be the main contributor as in-line with anticipated improvement in financial performance, and eventually achieve more than 50% operating profit contribution in the foreseeable future,” he said.
