Singapore-based Green Era has closed the acquisition of 33.33% stake in geothermal-focused Star Energy, for a total cash consideration of $440m.

Under the terms of the deal, the company has acquired 250,801 shares, representing 33.33% of all shares issued and paid up in Star Energy, held by Thailand-based BCPG.

Integrated power generation and petrochemical company PT Barito Pacific will continue to own the remaining 66.67% stake in Star Energy.

Star Energy owns controlling stakes in Indonesia-based geothermal energy assets, with a total gross capacity of 875MW.

The assets include Wayang Windu Geothermal power plant, Salak Geothermal power plant, and Darajat Geothermal power plant.

Green Era managing director Nancy Pangestu said: “This acquisition is a major milestone to effectively launch Green Era’s exciting growth and investment plans moving forward.

“We’re acquiring a solid geothermal asset, with a proven track record and renewable technology, to achieve clean, sustainable, and profitable growth. We are grateful for the support of Bangkok Bank to execute this transaction successfully.

“In the Star Energy leadership, we have in place a solid team of professionals with an outstanding track record of success. We are incredibly excited to be a part of their growth story, and to play a key role in the carbon reduction equation.”

Green Era is a Singapore-based renewables investment arm of the Pangestu family, focused on investments in renewable energy assets and technology.

The transaction represents the first renewables acquisition for Green Era, and is expected to advance growth in renewables across Southeast Asia.

The company said that the transaction is in line with its merger and acquisition (M&A) strategy.