On Wednesday June 14th, Aggreko plc (AGK) announced that it had acquired KBT (Kerta Bumni Teknindo), an Indonesia-based power rental company for a maximum consideration of $32.8m equating to 1 times net asset value.
KBT has around 200MW of diesel and gas contracts on hire with the local utility company PLN, which adds to the 140MW that Aggreko has contracted. KBT was established in 1993 and has successfully been serving the power rental market since 2010.
Aggreko CEO Chris Weston said: “Aggreko has had a long and productive relationship with PLN and Indonesia, and this acquisition will deepen this further. PLN has been clear in its ambition to improve the power situation in East Indonesia in particular, and we will be well placed to support this with our extended presence and competitiveness.”
This acquisition once again highlights the scale of the power shortages in Indonesia, and the opportunities the situation creates for innovative power solutions, such as the wellhead IPP (independent power project) solution under development by Andalas Energy & Power Plc (ADL), in collaboration with state energy company PT Pertamina.
Andalas’ strategy is to develop a portfolio of wellhead IPPs totalling between 250MW and 500MW of installed capacity, fired with gas from existing fields.