See Hup Seng in talks to invest in mini hydropower plant developer

See Hup Seng's group chief executive Henry Ng. The engineering and corrosion prevention services group said it is in talks to acquire a stake in a developer of mini hydropower plants in Indonesia. -- PHOTO: ST FILE
See Hup Seng's group chief executive Henry Ng. The engineering and corrosion prevention services group said it is in talks to acquire a stake in a developer of mini hydropower plants in Indonesia. -- PHOTO: ST FILE

SINGAPORE - See Hup Seng, an engineering and corrosion prevention services group, said on Tuesday it is in talks to acquire a stake in a developer of mini hydropower plants in Indonesia.

It is looking at paying US$8 million (S$9.9 million) for new shares in Aenergy Holdings Company, a wholly-owned subsidiary of mainboard-listed ISDN Holdings. This would amount to a 25 per cent stake in the enlarged share capital of Aenergy.

Aenergy would use the proceeds from the investment to develop mini hydropower projects in Indonesia, See Hup Seng said.

The Singapore-listed group would in turn gain a strategic exposure to Indonesia's growing renewable energy sector, particularly hydropower. Aenergy is currently developing mini hydropower projects in Indonesia with a combined installed base capacity of approximately 53 megawatts.

See Hup Seng's group chief executive Henry Ng noted that Indonesia is slated to increase renewable energy production to 15 per cent of its total energy production by 2025.

The Indonesian government is also focused on rural development and targets to achieve an electrification rate of 90 per cent by 2020, he added.

"It is estimated that only 17 per cent of Indonesia's mini-hydropower potential has been developed, so there is a significant growth potential for Aenergy," Mr Ng said.

"This is why we have decided to invest in this growth sector and hope that this strategic partnership may result in other growth opportunities for See Hup Seng."

See Hup Seng said it will enter into definitive agreements for the acquisition after satisfactory due diligence has been completed.

Separately, ISDN Holdings said Canadian private investor Robert Alexander Stone will acquire a 20 per cent stake in Aenergy for US$6.4 million (S$7.9 million).

Mr Stone has made an initial payment of US$2 million to Aenergy and will be able to appoint himself as a director in the company.