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Nebras buys 35.5% stake in Indonesian power firm

The acquisition was completed on December 22, according to a statement issued by Nebras

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Nebras Power announced that it had completed the acquisition of a 35.5% stake in Indonesian utility firm PT Paiton Energy through its wholly owned subsidiary Nebras Power Netherland BV.

The acquisition was completed on December 22, according to a statement issued by Nebras.

PT Paiton Energy owns a 2,045 megawatt (MW) thermal power plant in East Java, which is the first and largest Independent Power Producer (IPP) in Indonesia, representing 4 percent of the county’s total installed generation capacity.

Paiton Energy sells the entire capacity and output of its power plant under two long term power purchase agreements with PT Perusahaan Listrik Negara (Persero)'s (PLN), the Indonesian state-owned vertically integrated electricity utility. The remaining 64.5 percent equity stake in PT Paiton Energy is held by well-known international and local utilities and power development companies.

Nebras has also acquired a 35 percent stake in IPM ASIA Pte which owns 84 percent of PT IPM Operation and Maintenance Indonesia (PT IPMOMI), the entity responsible for operation and maintenance of Paiton power plant.

The acquisition of Paiton Energy represents Nebras’ first investment in the Indonesian power market and a significant step forward in Nebras’ vision to become a leading international power company. Fahad bin Hamad Al Mohannadi, Chairman of the Board of Directors of Nebras, said: “We are delighted to announce the completion of this acquisition, which allows us to add a remarkable generation asset to our portfolio and opens up a bright future for Nebras’ investments in the Indonesian and South East Asian markets. Nebras operates very closely with its shareholders and enjoys their full support as well as the support of the Board of Directors. Nebras aims at building an investment portfolio of more than 5 GW net by the next five years and plays a key role under the State of Qatar’s diversification strategy.”

Khalid Mohammed Jolo, CEO of Nebras, added: “This acquisition demonstrates Nebras’ commitment to its long-term strategy of investing in high quality assets with investment grade off-takers. It also reflects our confidence in the Indonesian market. I congratulate the entire Nebras team for the successful completion of this landmark transaction and I express my profound gratitude to the shareholders and the Board of Directors for their continuous support.”

Faisal Al Siddiqi, Director of Business Development, added: “The acquisition of this significant equity stake in Paiton Energy provides us with an excellent opportunity to invest in a secure and profitable project that offers immediate cash flow and substantial value addition to our shareholders”.

Jeffries International Limited acted as sole financial adviser and Clifford Chance (through its exclusive Jakarta-based affiliate Linda Widyati & Partners) acted as legal counsel to Nebras Power for this transaction. Nebras Power is an international power company established in 2014 and headquartered in Doha, Qatar.

The Company was established with an initial capital of QR3.65bn and with a mandate to invest in the conventional and renewable energy, water and utilities sectors globally, outside Qatar.

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