Danatama increases stake in Kertas Basuki.

PT Danatama Capital Management has increased its stake in paper producer PT Kertas Basuki Rachmat to 21.13%. The subsidiary of the Danatama Group already has a 12.5% stake in Kertas Basuki, which is still beset by financial problem, it acquired toward the end of last year. Kertas Basuki corporate secretary Tiur Simatupang said Danatama Capital increased its stake by acquiring 750 million more shares. Earlier the management of Kertas Basuki said this year the company is expected to continue to suffer losses as construction of a new paper machine is not yet completed. Danatama Capital acquired the stake after the process of due diligence study, said Steffen Fang, the director of Danatama Makmur, the financial advisor of Kertas Basuki and a sister company of Danatama Capital. Steffen said Danatama Makmur is helping Kertas Basuki seek loan funds from a number of banks to finish the construction of its paper machine. Kertas Basuki needs around US$ 60 million to continue work to build the paper machine that will expand the capacity of the paper factory.