Milbank LLP advised PT Medco Daya Energi Sentosa ("MDES"), a subsidiary of PT Kalibiru Energi Lestari, on the acquisition of additional equity interests in PT Paiton Energy, Minejesa Capital B.V. and IPM Asia Pte. Ltd. from RH International (Singapore) Corporation Pte. Ltd., a wholly owned indirect subsidiary of Ratch Group PCL, for approximately US$85 million. With this acquisition, MDES becomes Paiton's single largest shareholder, marking the first time an Indonesian company is the single largest owner of Paiton.
Paiton Unit 3, 7 and 8 owned by PT Paiton Energy, located in Probolinggo, East Java, is one of Indonesia's largest and longest-operating independent power producers, generating 2,045 MW of power capacity under power purchase agreements with PLN, Indonesia's state electricity company, running through 2042. Paiton Energy sits within the broader Paiton Power Station, Indonesia's largest power generation facility. Since its establishment in the 1990s, the asset had been controlled by a number of the world’s largest energy companies including Mitsui & Co. of Japan, JERA (a joint venture of TEPCO and Chubu Electric), GDF Suez of France and Nebras Power of Qatar.
MDES has progressively increased its position in Paiton Energy to become its largest shareholder. Milbank advised MDES on each of these transactions, beginning with the acquisition of stakes from JERA Co. and PT TBS Energi Utama in 2021, followed by a subsequent acquisition from Nebras Power of Qatar in 2023 and the acquisition of a further stake from Mitsui & Co. as part of Mitsui's full exit in April 2024.
"This acquisition required careful coordination among multiple counterparties and jurisdictions," said David Zemans, Milbank's Asia Managing Partner. "MDES acquired this position through four separate transactions involving Japanese, Qatari, Thai and Indonesian parties. It is a remarkable achievement for both the company and for Indonesia's energy sector. Milbank is proud to have been MDES’ advisors on each of these very important transactions."
The Singapore-based Milbank team was led by Mr. Zemans and Special Counsel Min Kim, and associates Hua Chan and Wei Sheng Lee.
