Jera and TBS Energi Sell Paiton Plant Stakes to Medco

Jera Co, a Japanese company, revealed that it had sold its 14 percent stake in PT Paiton Energy, the owner of the Paiton Coal-Fired Power Plant (PLTU) to PT Medco Daya Energi Sentosa, a subsidiary of PT Medco Daya Abadi Lestari. "Jera will continue to renew its portfolio going forward, selling assets, and reinvesting the proceeds as it optimizes its asset allocation for compatibility with a changing business environment and seeks to expand earnings," Jera stated on Friday (8/20), as quoted by Natural Gas World.

Meanwhile, PT TBS Energi Utama Tbk (TOBA), on Monday (8/23), also released a similar statement on the selling of Paiton Energy shares. Based on the information disclosure submitted to Indonesia Stock Exchange, the company, previously named PT Toba Bara Sejahtera, sold its five percent stake through PT Batu Hitam Perkasa (BHP) to Medco Daya for US$64.61 million. TBS Energi also released a five percent class A stake in Minejesa Capital B.V., a Netherlands-based company, also owned by Paiton Energy, to Medco Daya.

The stake sales are part of TBS Energi’s attempt to develop renewable energy resources and reduce carbon footprint. "Besides, the share transaction through BHP is to strengthen the company's financial condition. From a strategic point of view, the company sees that the transaction has a good economic value for both BHP and the company," TBS Energi wrote in information disclosure.