The acquisition enables CCB to establish its presence in the LNG supply chain and develop expertise in the floating storage regasification unit (FSRU) solution.
KUALA LUMPUR: Coastal Contracts Bhd (CCB)inked a binding memorandum of understanding yesterday with Jakarta-based PT.
Jaya Samudra Karunia Internasional (JSK) for the acquisition of a 49 per cent equity interest in its unit, PT. Jaya Samudra Karunia Gas (JSK Gas) for US$6.55 million.
In a filing to Bursa Malaysia, CCB said the acquisition is expected to be completed by the fourth quarter of 2016.
JSK Gas will then issue 1,500 new ordinary shares at an issue price of US$14,197,572.
JSK core business is in Indonesia’s coal transporation sector.
Given the huge potential in Indonesia’s liquefied natural gas (LNG) market, JSK has ventured into the LNG supply chain, CCB said in a separate statement.
“Recently, it was awarded the LNG regasification and LNG storage contracts to support a 200 MWh gas-fired power plant in Bali, Indonesia,” it said.
The acquisition enables CCB to establish its presence in the LNG supply chain and develop expertise in the floating storage regasification unit (FSRU) solution.
“It will be able to build a new portfolio of LNG related products and services which are core to the LNG downstream sector, especially for small-scale FSRU which is suitable for the archipelagic region, is less capital intensive and requires shorter construction period,” it said.
Meanwhile, Coastal Group Executive Chairman Ng Chin Heng said as Indonesia’s power-generation plans are positioning the country to become one of the fastest-growing markets for LNG and a regional first-mover in small-scale LNG receiving terminal in Asia, the group foresees exciting opportunities for growth in this new sector. — Bernama