Enel finalized the agreement for the sale of 10% of the Indonesian coal producer PT Bayan Resources Tbk, currently owned by Enel Investment Holding, a wholly owned subsidiary of Enel, to businessman Dato' Low Tuck Kwong, the controlling shareholder of Bayan.
The transaction was concluded against a consideration of 85 million US dollars, entirely in cash.
Thus Enel continues along the path of strategic operations on foreign markets. The news of the agreement with the Indonesian businessman arrives the day after the sale of renewable plants in Mexico for 1,35 billion dollars. From 2015 to today, the Group has sold assets for a total aggregate value of 5 billion euros.
“The divestment of the minority stake in Bayan is perfectly in line with our asset rotation strategy as well as our plans for a complete decarbonisation of the generation mix by 2050”, commented Francesco Starace, CEO and general manager of the Enel Group. "At the same time we confirm our interest in Indonesia, a land rich in renewable resources, where we are engaged in geothermal prospecting activities and where we are also evaluating opportunities in other renewable energy projects".
In August 2008, Enel bought a 10% stake in Bayan during the Initial Public Offering that preceded the Indonesian coal producer's listing on the Jakarta Stock Exchange.
The transaction is part of the 8 billion euro rolling asset rotation target envisaged by Enel's active portfolio management strategy. In line with this strategy, the proceeds from the sale will be used to finance growth in strategic sectors such as networks, renewables and the purchase of minority shareholdings.
Bayan is an integrated Indonesian coal producer. The main shareholders of the listed company are entrepreneur Dato' Low Tuck Kwong, whose 51,6% stake will rise to 61,6% after the purchase of Enel's stake, utility Korea Electric Power (20,0%) and other founding shareholders (about 9%). Bayan is engaged in open pit mining of different grades of coal.
In Indonesia, Renewable Energy Division Enel, Enel Green Power, is currently engaged in exploration of geothermal resources, in consortium with Indonesia's PT Optima Nusantara Energi (PT ONE), and in the construction of the Wayai Ratai plant (55 MW) in the Way Ratai area, Lampung province, after the 2016 public tender was awarded. In the same year, the Enel Group also signed a Memorandum of Understanding with the Indonesian PT PLN Persero utility to assess potential development opportunities for sustainable generation facilities in the country.
