Pertamina Ready Rp 6.5 Trillion To Acquisition Medco Energy International

Ministry of State Owned Enterprises (SOEs) to ensure PT Pertamina (Persero) through PT Pertamina Hulu Energy (PHE) will take over the shares owned by Arifin Panigoro through Encore Energy Pte Ltd. in PT Medco Energy International Tbk (MEDC). Acquisition value could reach Rp 6.5 trillion.

"Pertamina interested to Mr Arifin's share or shares of the company. But for the public shares is not in talks," said Mustafa Abubakar, Minister of State in his office, Jalan Medan Merdeka Selatan, Jakarta, Thursday (10/07/2010).

Mustafa said the stock purchase was an attempt PHE to strengthen its business lines, particularly in the upstream sector. According to Mustafa, the company is reviewing this plan seriously.

"The important pertamina want to strengthen their upstream sector. Definitely they are serious at all," he said.

Meanwhile, PT Pertamina (Persero) claimed to have set up funds to buy shares of oil and gas company. One of which was explored was the PT Medco Energy International Tbk (MEDC) owned by Arifin Panigoro.

This was conveyed by Vice President Corporate Communications Pertamina, Mochammad Aaron on Thursday (07/10/2010).

"If the money we have. In this year we are set aside for acquisitions. Now many are we explore, not only Medco," said Aaron.

Aaron said, now the company is studying the detailed candidate profile companies being targeted and the benefits from action to perform.

"Still in the process that must be passed until finally there is the decision of the company. We'll see more detail how our potential partners, patterns of cooperation. The place where, and how much value obtained from these synergies," he said.

Currently, Arifin Panigoro through Encore Energy mastered 1,546,456,054 shares equivalent to 46.41% of MEDC. Unfortunately Mustafa did not say how many shares to be taken over by PHE.

But the news on the trading floor, the acquisition price will be in the range USD 4000-4200 per share. With the assumption that price, the acquisition of all shares on the MEDC Encore Energy could reach Rp 6.2 to 6.5 trillion. (*)