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)