China Datang Corp. Ltd., through Datang Overseas (Hong Kong) Energy Investment Co. Ltd. announced has acquired 75 percent shares of PT DSSP Power Mas Utama, a unit energy firm PT Dian Swastatika Sentosa Tbk (IDX: DSSA) - Photo by the Company

JAKARTA (TheInsiderStories) – China Datang Corp. Ltd., through Datang Overseas (Hong Kong) Energy Investment Co. Ltd. announced has acquired 75 percent shares of PT DSSP Power Mas Utama, a unit energy firm PT Dian Swastatika Sentosa Tbk (IDX: DSSA). The the deal was signed on Dec. 23 and have total values of US$394 million.

The management said, the buyer is controlled by the Chinese Government and owns several power plants across the Asian region. While, DSSP Power, managed a power plants with a total installed capacity of 600 megawatts (MW). One of the utility projects is the Sumsel-5 steam power plant with a capacity of 2×150 MW in Banyuasin, South Sumatra.

China Datang’ president director, Kou Wei, said the transaction with the Dian Swastatika opens a new chapter of cooperation between the two companies. He added that the strategic partnership with the Sinarmas Group is committed to expanding cooperation in Indonesia, Southeast Asia and other overseas markets through collaboration and innovation.

While, chairman of the issuer,  Franky Oesman Widjaja, commented, “We hope that in 2021 onwards, bilateral cooperation and economic and trade exchanges between China and Indonesia will reach a new levels.”

Beside, get fresh funding from the divestment, Dian Swastatika have pocketed a loan facilities worth of Rp1.38 trillion from PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Indonesia Infrastructure Finance, and PT Sarana Multi Infrastruktur (SMI). On Dec. 18, the producer together with its subsidiaries, PT Eka Mas Republik and PT Innovate Mas Indonesia, signed a financing agreement with IIF.

The ceiling is Rp773 billion with a tenure seven years. Then, SMI agreed to disburse financing of up to $28 million on Dec. 10. These facilities will be used, for the development of the group businesses. The issuer through its subsidiaries has various business units, ranging from power plants, coal mines, gold, to multimedia businesses.

Early December, Dian Swastatika announced to inject capital over than Rp4 trillion (US$283.69 million) funds to DSSP Power Mas Utama Rp4.15 trillion and PT DSSP Power Sejahtera around Rp52.73 billion. Both companies planned to releases new shares and will be taken by PT Energi Mas Anugerah Semesta, a unit of the company, which was established in April 2020 and engaged in management consulting.

The two have power plant projects under PT DSSP Power Sumsel Dua in South Sumatera, which is engaged in the power generation business. Currently, the unit has two coal-gas fired power plant Kalteng-1 and Kalteng-3 in Central Kalimantan with a capacity of 2×100 megawatts (MW), which are being rushed to be completed in this year.

Dian Swastatika also has two other power plant projects, namely the Sumsel-5 with a capacity of 2X150 MW which has been operational in December 2016 and Kendari-3 with a capacity of 2X50 MW which has been operating in October 2019.

This year, The business group founded by Eka Tjipta Widjaja is aiming to manage power plant project with a capacity of 1,100 MW with a potential investment of around $1.65 billion. The managing director, Gandhi Sulistiyanto said, so far, the company has build 900 MW of power plant projects.

In addition, the power producer has became the shareholder of telco operator, PT Smartfren Telecom Tbk (IDX: FREN), after converting the sister company’ mandatory convertible bond into shares. The converted shares were listed on the Indonesia Stock Exchange on Sept. 22 and the producer hold around 15 percent of the cellular firm.

US$1: Rp14,100

Written by Staff Editor, Email: theinsiderstories@gmail.com