China Datang nears deal for Indonesian power projects

[JAKARTA] China Datang Corp is nearing an agreement to buy a majority stake in three thermal power plants in Indonesia for about US$400 million, according to people familiar with the matter.

The state-backed energy giant is in advanced talks with PT Dian Swastatika Sentosa for a 75 per cent stake in its three independent thermal power plants with a total capacity of 600 megawatts, the people said. An announcement could come as soon as this week, said the people, who asked not to be identified as the discussions are private.

Negotiations could still be delayed or fall apart, the people said. Representatives for China Datang and DSS didn't immediately respond to requests for comment.

Headquartered in Central Jakarta, DSS was listed on the country's stock exchange in 2009. In addition to the three independent thermal power plants, it also directly operates four captive power plants with a total capacity of about 300 megawatts, according to its website. The company is also involved in coal mining and trading as well as fertilizer and chemical trading.

Indonesian conglomerate PT Sinar Mas Tunggal is the largest shareholder of DSS with a 59.9 per cent stake, while the rest is in public hands, according to data compiled by Bloomberg.

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