Jakarta. Tokyo-based electricity provider Shikoku Electric Power Co. Inc. (Yonden) has reached an agreement with Hero Global Investment (HGII) to acquire a 25 percent stake in the Indonesian renewable energy company. The transaction will be completed after HGII’s initial public offering (IPO).

Hero announced in a statement on Friday that Shikoku had appointed its subsidiary, SEP International Netherlands BV (SEPI), to purchase the stake and "establish a strategic partnership." Shikoku currently manages a renewable energy portfolio with a combined capacity exceeding 1,000 megawatts.

The sale and purchase agreement was signed on November 8 between SEPI and Hero’s controlling shareholders. The transaction is expected to be finalized within a month after HGII’s shares are officially listed on the Indonesia Stock Exchange.

“Our collaboration with Yonden offers a significant opportunity for HGII to accelerate renewable energy growth in Indonesia. In alignment with the national net-zero emission target by 2060, HGII is committed to expanding our renewable energy portfolio,” HGII President Director Robin Sunyoto said.

HGII plans to develop renewable energy projects, including hydropower, solar power, biogas, and biomass, with a combined capacity of 100 megawatts by 2031.

“With Yonden’s technical support and expertise in project development, operation, and maintenance, Hero is confident in making a substantial contribution to Indonesia’s renewable energy industry,” Robin added.

A public filing at the Indonesia Stock Exchange disclosed that SEPI will purchase 1.6 billion shares from three major Hero shareholders at the IPO price, equivalent to 25 percent of the total shares.

Rudy Chandra will sell 552.5 million Hero shares (8.5 percent) to SEPI, while Robert Njo and Hendrianto Thamrin will each sell 536.25 million shares (8.25 percent) to SEPI.

Rudy’s ownership in Hero will be reduced to 18.7 percent from 27.2 percent, while Robert’s and Hendrianto’s shares will decrease to 18.5 percent each from 26.4 percent. Together, the trio will retain a controlling stake in Hero with a combined ownership of 55 percent. The remaining 20 percent of the shares will be sold to the public.

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