JAKARTA. PT Krakatau Steel (Persero) Tbk (KRAS), through its subsidiary, PT Krakatau Sarana Infrastruktur (KSI), had divested two of its subsidiaries and transferred it to PT Chandra Asri Petrochemical Tbk (TPIA) for IDR 3.24 trillion.

KSI signed the Conditional Shares Sale and Purchase Agreement (CSPA) with TPIA last Friday (30/12), as well as the Shareholders Agreement yesterday (3/1). According to the CSPA, Chandra Asri will acquire 70% of KSI’s shares in PT Krakatau Daya Listrik (KDL) and 49% of KSI’s portion in PT Krakatau Tirta Industri (KTI) for a total of IDR 3.24 trillion.

Agus Nizar Vidiansyah, President Director of KSI, revealed that the signing of CSPA and SHA is, indeed, a part of KSI’s initiative of KDL and KTI divestment. On the other part of the agreement, Erwin Ciputra, President Director of Chandra Asri, claimed that his company is excited to implement this “programmatic M&A” strategy and place Chandra Asri amidst the profitable and sustainable business growth.

KDL is currently developing its business in the renewable energy, which coincides with Chandra Asri’s initiative in green energy transition. Not long ago, KDL also launched a brand that will house the renewable energy product called ERICS, which stands for Empowering Renewable Energy of Indonesia with Krakatau Solution. Throughout 2022, ERICS had launched several Solar Power Plants in different areas across Cilegon, Banten, including the one near Kerenceng Water Reservoir that belongs to KTI. For the record, Chandra Asri is also reportedly implementing its own green energy transition intiatives. (AM/ZH)