Jakarta, INTI - PT Barito Renewables Energy Tbk has submitted an offer to acquire Philippine geothermal energy company, Energy Development Corp (EDC), as part of its business expansion plans in the country.
It is reported that Barito Renewables has submitted an unsolicited and non-binding indicative offer with an equity value of approximately USD 5 billion (approximately Rp90 trillion) to EDC.
First Gen, the parent company of EDC, stated that the offer is still subject to due diligence, preparation of transaction documents, and obtaining various necessary approvals. To date, there have been no discussions between the two parties or any signed agreements.
The Companies’ Portfolio
First Gen shares surged as much as 33% in Manila, their biggest intraday gain since its initial public offering (IPO) in 2006, before paring some gains and closing 18% higher. This boosted its market capitalization to about USD 1.2 billion.
Meanwhile, Barito Renewables shares rose 4.1%. The stock has fallen more than 60% this year, bringing the company's market value to nearly USD 26 billion.
Bloomberg reported that the EDC acquisition has the potential to be one of the largest clean energy deals in Asia in recent years and one of the largest acquisitions in Philippine history.
Barito Renewables is part of the Barito Pacific Group, with an asset portfolio that includes geothermal and wind power plants operated through several subsidiaries. Meanwhile, First Gen is a Philippine clean energy company with assets spanning geothermal, hydro, wind, solar, and natural gas power plants.
Conclusion
PT Barito Renewables Energy Tbk an acquisition offer worth approximately USD 5 billion (Rp90 trillion) to Energy Development Corp (EDC), a Philippine geothermal company backed by First Gen Corp. If completed, the transaction has the potential to be one of the largest renewable energy acquisitions in Asia in recent years and one of the largest in the Philippines.
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