PLN will offer equity shares to foreign companies
PLN will offer equity shares to foreign companies
JAKARTA (JP): The state electricity company PT PLN plans to
sell 10 percent of its shares to foreign firms through direct
placement before offering new common shares to the public on
domestic stock markets.
"Some foreign investors have shown interest in buying our
shares through direct placement," PLN's new president, Djiteng
Marsudi, told reporters here yesterday after a ceremony to
install him as the company's chief executive.
The investors are, among others, National Power and National
Grid, both from Britain, Light Power Ltd. of Hong Kong,
Electricite de France (EDF) of France and two giant power
corporations from the United States, Djiteng said.
Djiteng replaced PLN's outgoing president, Zuhal, who was
appointed yesterday as director general of electricity and energy
development by Minister of Mines and Energy I.B. Sudjana. Zuhal
replaced Artono Arismunandar.
Djiteng, who was PLN's former director of finance, said that
the company plans to offer the direct investment placement
through its planned subsidiaries, PT Pembangkit Jawa Bagian
Barat, which will be responsible for the operation of PLN's power
plants in West and Central Java, and PT Pembangkit Jawa Bagian
Timur, which will assume the operation of power stations in East
Java and Bali.
He said that PLN is now finalizing the establishment of its
new subsidiaries, each scheduled to start operating with about Rp
6 trillion (US$2.72 billion) in individual assets by the middle
of this year.
"We expect that the investors will help strengthen the
financial structures of our subsidiaries and share their
expertise in power generation and transmission as well as
management," he said.
"Under the planned partnership, we are optimistic that the two
subsidiaries will be able to go public early next year and even
offer their shares on an international stock exchange in the same
year," he said.
Responding to a question on the percentage of the shares to be
offered to the public, he said PLN will likely sell some 20
percent of its planned subsidiaries' stocks.
Investments
Djiteng said that most of the investments expected from share
sales will be used to finance the construction of distribution
and transmission networks.
He also said that PLN signed a memorandum of understanding
with British National Power and National Grid last year to
explore opportunities of cooperation for the development of
electricity transmission networks.
He added that PLN needed some Rp 10 trillion every year for
the development of its power generation and transmission
facilities throughout the country.
To accelerate the transmission facility development, Djiteng
said that PLN will issue bonds worth Rp 1 trillion next week and
plans to offer bonds valued at another Rp 1 trillion by June.
PLN planned to issue bonds worth Rp 1 trillion last November
but the plan was canceled.
Yesterday's inaugural ceremony was also marked by the
appointment of Zuhal as PLN's chief commissioner to replace
Arismunandar, Muslim Abuhudjus as PLN's director of finance
replacing Djiteng, P. Sihombing as director of development
replacing Kodyat Samadikun and Hadi Darmono as director for
administrative affairs replacing Endhy Aziz. The company's old
commissioners were reappointed.
Sudjana also inaugurated Priyambodo Mulyosudirjo, a former
junior director in charge of exploration and production for the
state oil company Pertamina, as its director for exploration and
production to replace G.A.S. Nayoan. (fhp)