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Asia Poly downsizes Aceh hydro power plant, trims stake in firm undertaking the project

The Edge logo The Edge 20/2/2019 Adam Aziz
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KUALA LUMPUR (Feb 20): Asia Poly Holdings Bhd, which is undertaking the development of a hydro power plant in Aceh, Indonesia, is downsizing the plant's capacity from 12MW to 10MW to expedite the process of securing the independent power purchase agreement for the project from the State government.

Concurrently, Asia Poly has reduced its indirect equity ownership in the subsidiary undertaking the project, PT Rimba Tripa, to 49% from 51% previously to comply with local legislation in relation to the reduced capacity, it said in a statement today.

“In accordance to the local legislation, the foreign shareholdings will be restricted to a maximum of 49% for any proposed hydro electric power plant with 10MW and below,” said Asia Poly.

Asia Poly’s 49% stake in PT Rimba Tripa is held via its wholly-owned unit, Asia Poly Green Energy Sdn Bhd.

"In view thereof, PT Rimba Tripa has ceased to be [a] subsidiary of Asia Poly Green Energy Sdn Bhd, and in consequence, PT Rimba Tripa will now be a 49% indirect associate of Asia Poly," the group said.

Following the change in shareholdings, two Malaysians who previously owned 16% and 21% in PT Rimba Tripa — Leow Teow Hong and Nik Maimun Nik Sulaiman, respectively — have ceased to hold stakes in the company.

Meanwhile, Hiiard Sjafei, who previously owned 12% in PT Rimba Tripa has increased his stake to 35%. The company also welcomed a new shareholder, Haryono, who now owns the remaining 16% stake.

To recap, Asia Poly, which is involved in the provision of cast acrylic products, bought into PT Rimba Tripa in May 2017 to participate in the development of a 12MW hydro power plant in Aceh, with construction cost estimated at RM92 million at that time.

The project was initially expected to commence construction in Oct 2017, with completion targeted in May 2019.

It was previously announced that PT Rimba Tripa had obtained environmental and location permits from the relevant authorities in Dec 2017. The latter allows Rimba Tripa to purchase the land required for the project, although no announcement has been made on the matter.

Shares of Asia Poly rose half a sen to 8.5 sen today, giving it a market capitalisation of RM38.04 million.

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