Wika to divest shares in West Java power plant

State owned construction and engineering company PT Wijaya Karya (WIKA) plans to divest 35 percent of the company?s shares in PT Wijaya Karya Jabar Power (WJP) as part of the company?s strategic business plan, Investor Daily reported on Thursday.

The company?s corporate secretary Natal Argawan Pardede said in Jakarta on Wednesday that the shares would be sold to Prima Citra Perdana, one of Wika?s shareholders, at above its nominal value of Rp 10,000 per share.

The divestment reduced Wika?s shares in WJP to 20 percent from 55 percent previously. ?With the sale of 490,000 shares (35 percent), WJP?s financial results will be no longer consolidated in Wika?s financial reports,? he said.

WJP is developing a geothermal power plant with a capacity of 40 megawatt in Mt Tampomas, Sumedang, West Java . The company plans to invest up to US$100 million in the geothermal project.

In addition to Wika, other shareholdera are PT Jasa Sarana (40 percent) and PT Resources Jaya Teknik Management Indonesia (5 percent). (*)