Hunton Andrews Kurth Advises EGCO on Strategic Partnership to Re-establish and Expand its Infrastructure and Utility Business in Indonesia

The firm is pleased to continue our long-term relationship as international and Thai legal counsel to Electricity Generating Public Company Limited (BKK: EGCO) on its significant cross-border investment milestones. Most recently, our energy and infrastructure team in Bangkok represented EGCO on its re-entry into the Indonesian infrastructure and utility market by way of a strategic investment in newly issued shares worth USD194 million and representing a 30% ownership interest in PT Chandra Daya Investasi (CDI) (the “Transaction”), which is a subsidiary of PT Chandra Asri Petrochemical Tbk (now renamed as PT Chandra Asri Pacific Tbk) (JK:TPIA). Chandra Asri Pacific is Indonesia's leading chemical company engaging in infrastructure solutions and operating an integrated petrochemical plant. EGCO’s investment is made through its wholly-owned subsidiary in the Netherlands, Phoenix Power B.V.

CDI is an infrastructure and utility investment company, with a portfolio of electricity generation and distribution, water treatment and supply, and tank and jetty management businesses based in Cilegon City, Banten province, which is home to the PT Krakatau Industrial Estate, one of Indonesia’s largest industrial estates.

EGCO is one of Asia’s largest independent energy developers and has been listed on world-class recognition Dow Jones Sustainability Indices (DJSI) 2023 in the Emerging Markets Index - Electric Utilities for the 4^th consecutive year. The investment from EGCO will expand and strengthen a variety of potential infrastructure and utility projects of CDI.

The Hunton Andrews Kurth team assisted EGCO in conducting legal due diligence on CDI and its asset portfolio, and in the extensive negotiation documentation and finalization of all key agreements in relation to the Transaction, including the Share Subscription Agreement, the related Deed of Guarantee, the Shareholders’ Agreement relating to CDI and the related Deed of Undertaking, which were signed on 12 December 2023. The Transaction was completed in late December 2023. ABNR counselors-at-law acted as Indonesian co-counsel and supported our team on all critical aspects of the Transaction.

Bangkok’s energy and infrastructure team led by partner Chumbhot (Arm) Plangtrakul and senior associate Sudarat (Deuce) Sattayakawee represented EGCO on this tremendous Transaction. Along with Arm and Deuce, associates Chartthai (M) Sutthapas, Thaphanut (KJ) Vimolkej, and Jitranut (Faye) Narkmai.