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ISDN in Cambodian power plant JV, disposes stake in associate

MAINBOARD-LISTED ISDN Holdings on Monday said it has taken a 33 per cent stake in a joint venture (JV) which will build an 80 megawatt hydroelectric power plant in Cambodia.

The industrial automation firm will inject US$500,000 as equity into the JV and another US$2.5 million as a shareholder loan representing the expected investment sum for the project’s initial development phase, it said in a regulatory filing.

The project has already received confirmation and guarantee from the Cambodian government for the businessrights for the construction of the power plants and for the sale of electricity at a fixed price to the Cambodia Electric Power Corporation.

The operating rights of the project will be transferred to Cambodia Electric Power Corporation 35 years after the start of operations of the plant.

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The JV, called SPHP Co Pte Ltd, is incorporated in Singapore, with Tokyo-listed eREX Co and Cambodian company Asia Energy Power Co taking the remaining 34 per cent and 33 per cent stakes respectively.

eREX is a power producer and supplier engaged in electric power distribution via a power grid owned by general electric utilities, while Asia Energy Power is a newly-incorporated Cambodia company engaged in building electric power plants.

ISDN managing director and president Teo Cher Koon said the group had been looking for "lucrative opportunities" to further penetrate Asia’s renewable energy sector.

"We seek to extend our expertise in building hydropower plants in Cambodia, helping to alleviate widespread blackouts in the country in the near future," he added.

In a separate announcement on Monday, ISDN said its unit ISDN Myanmar Power has disposed its 30 per cent stake in C&I Renewable to Comtec Power Group for 822,172 yuan (S$158,500), satisfied fully in cash.

Under the sales and purchase agreement, Comtec Power will pay ISDN Myanmar Power the sale amount within 10 days after the sale shares are transferred.

The net asset value of the sale shares was around S$145,000 as at Sept 30, based on C&I Renewable’s management accounts.

Following the disposal, ISDN will no longer have any shareholding interest in C&I Renewable. C&I Renewable and its subsidiaries will also cease to be associated companies of ISDN.

ISDN added that the disposal is not expected to have a material impact on the net tangible assets per share and the earnings per share of the group for the financial year ending Dec 31, 2019.