KAB Energy Holdings Sdn Bhd (KABEH), a wholly owned subsidiary of Kejuruteraan Asastera Bhd (KAB), has acquired Indonesia-based PT Inpola Mitra Elektrindo (PT IME). KABEH has also signed a term sheet agreement with Sarawak Cable Bhd (SCB), under which the company is required to undertake a diligence exercise within three months of the term sheet’s implementation.
KEBEH will also acquire Kombih III, PT IME’s mini hydro power plant, located in North Sumatera. The hydropower plant will provide renewable energy to PT Perusahaan Listrik Negara (PLN), a state-owned utility company, under a power purchase agreement (PPA) for a concession period of 20 years.
Once the process of acquisition has been completed, the hydro power facility is expected to generate at least RM270 million in income for KEBEH throughout the concession period.