(Bloomberg) -- China Datang Corp. has bought a majority stake in PT Dian Swastatika Sentosa's thermal power plants in Indonesia for $394 million.
The state-backed energy giant acquired a 75% stake in a DSS's subsidiary that operates the plants, according to an exchange filing published on Tuesday, which confirmed an earlier Bloomberg News report. DSS will remain as a minority shareholder for the assets.
The transaction will support DSS to further develop its power generation business and diversify its portfolio, the company said in the statement. Shares of DSS rose as much as 5.2% on Tuesday in Jakarta.
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% stake, while the rest is in public hands, according to data compiled by Bloomberg.
Barclays Plc is the financial adviser to DSS on the power plants sale.
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