JAKARTA (TheInsiderStories) – Salim Group joined with Medco Group expand their businesses to Singapore. Its unit, Singapore based SM Investments Pte Ltd announced has signed a binding agreements to invest of S$530 million in Hyplux Group. The agreement has been signed on Oct. 18.
Hyflux Group is a global provider of sustainable solutions based in Singapore. The company specialist in water treatment and among the top global desalination plant providers, and addressed the challenges at every point of the water value chain. The Group has expanded its offerings to include power generation and waste-to-energy and wellness industry with the ELO brand to broaden its consumer market portfolio.
“We see tremendous potential for synergies between Hyflux and our existing businesses as well as opportunities within our consortium in which we can involve the company. We will work with Hyflux to keep its flagship assets intact, bearing in mind the significance of this company to Singapore,” commented Anthony Salim, Chairman of the Salim Group in a written statement.
Arifin Panigoro, Founder of Medco Group added, “Our aim is to further grow Hyflux leveraging on its strength in system integration and optimization of water treatment and waste management as well as in power generation.”
Olivia Lum, Executive Chairman and Group Chief Executive Officer of Hyflux Ltd stated, after a rigorous selection process, the board of directors unanimously selected SM Investments Pte Ltd as the strategic investor for the Group.
With the financial strength of the Salim group and the Medco Group, as well as the consortium’s combined experience in water utilities, power generation and infrastructure projects, the board believes that this partnership will elevate Hyflux to a different level and open up new untapped growth opportunities for the Group.
“I am confident that with the support of this Consortium, Hyflux will attain new heights and play an even bigger role in the infrastructure space particularly in Singapore and South East Asia,” she said by adding the consortium will own 60 percent of equity in Hyflux upon completion of the transaction.
The Salim Group is one of the largest conglomerates in Asia which controls Pacific Light Power Pte Ltd, an 800 megawatts (MW) power genco in Singapore among others. The Group owns various investments around the region, including investments in Metro Pacific Investments Corporation, the largest infrastructure investment management and holding company in the Philippines.
Maynilad Water Services, Inc., the water and wastewater services provider in Metro Manila. Moya Holdings Asia Ltd, the water treatment and distribution provider in Jakarta. Meralco, the private sector electric distribution utility company in the Philippines. PXP Energy Corporation, an oil and gas company and PT Indofood Sukses Makmur Tbk (IDX: INDF), a diversified food, noodle and beverages company; among others.
While Medco Group comprises, among others, PT Medco Energi Internasional Tbk (IDX: MEDC), various plantations, property, and a financial institution. MEDC is an integrated energy and natural resources company with significant interests in oil & gas exploration & production focused principally in Indonesia.
It controls and operates the West Natuna Transportation System Pipeline which delivers gas to Singapore, and is also a major shareholder in PT Amman Mineral Nusa Tenggara, Indonesia’s second largest copper and gold producer.
PT Medco Power Indonesia (MPI), a subsidiary of MedcoEnergy owns and operates clean energy power plants with combined gross capacity of 645 MW including the 330MW Sarulla geothermal power plant, the world’s largest single-contract geothermal project.
MPI also operates and maintains third-party power plants with a total capacity of 2,150MW. MPI will be commencing development of Riau CCPP (275 MW) and Ijen geothermal (110 MW) soon. MPI will continue to prioritise development in the sector of clean and renewable energy.