Chandra Asri Group Achieves US$194 Million Equity Investment From EGCO Group

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Chandra Asri Petrochemical Tbk (Chandra Asri Group), a leading chemical company and infrastructure solution in Indonesia, has achieved an investment of 194 million US dollars from Electric Commercial Commercial Company Limited or EGCO Group (EGCO), an independent energy producer in Thailand. After completing the transaction process, EGCO will own 30 percent stake in Chandra Asri Group's subsidiary, PT Chandra Daya Investasi (CDI), dedicated to infrastructure solutions.

Chandra Asri Group will continue to maintain a 70 percent stake in CDI. The net funds obtained will be used for the development of the Chandra Asri Group and EGCO infrastructure businesses, which include energy, water, and port facilities.

The EGCO Group is selected as Chandra Asri Group's preferred partner to support the exponential growth of Chandra Asri Group's infrastructure business, after going through a strong and comprehensive strategic investor selection process. This collaboration marks an important milestone for both companies, combining Chandra Asri Group's expertise in the chemical and infrastructure sector with EGCO proficiency in the field of electrical and energy solutions.

Erwin Ciputra, President Director of Chandra Asri Group, said that his party is very pleased to be joining EGCO as a new growth partner to create synergies that will not only increase operational efficiency, but also contribute to a more sustainable future.

"By utilizing power, we believe this collaboration will bring positive changes in the infrastructure landscape in Indonesia. We are also grateful for the continuous support of shareholders, investors, and other stakeholders to make this transaction a brilliant and extraordinary success," he said in a written statement, Wednesday, December 13.

Theppitak Theppitak CEO, CEO of the EGCO Group, emphasized that this new investment is in line with EGCO Group's strategic goals to acquire high-quality and profitable gas-fueled power generation facilities.

"This investment will help strengthen our power generation business and expand fuel businesses and other infrastructure in ASEAN. This collaboration also allows EGCO to smoothly integrate into the promising market in Indonesia with the potential for further expansion in Southeast Asia, while maintaining a long-term partnership between EGCO and Chandra Asri Group," he explained.

CDI aims to generate long-term, stable and sustainable profits for shareholders through its infrastructure business. Its core infrastructure asset portfolio consists of the largest and only integrated water company in Indonesia, one of the 2 Joint Cycle Power Plants of gas turbines in Indonesia, a joint venture of environmentally friendly power plants with a capacity of 200 MW with Posco International (the largest trading company in South Korea), and an intermediate tank rental service company as well as integrated dock management based in leading industrial estates on the island of Java.

CDI provides further growth in assets in its portfolio through (i) increasing value through operational excellence; (ii) the realization of cross-entity synergies; and (iii) integrating the best ESG practices.