Arifin?s share divestment in Medco under negotiation

The divestment of Arifin Panigoro?s shares worth US$75 million in PT Medco Energy Internasional Tbk is now under negotiation with a number of investors, Bisnis Indonesia reported on Wednesday.

?(Arifin?s) share ownership has not changed yet but some investors have expressed their interest to buy the share,? Yani Rodiyat, a director of Medco Energi was quoted as saying.

Yani refused to name the would-be buyers, saying it would take time to conclude the deal.

Earlier reports said that International financial agency Credit Suisse First Boston (CSFB) may release its shares in PT Medco Energi International.

CSBF became a majority shareholder in Medco Energi under a debt equity swap agreement signed in 1999 The financial company and the Panigoro family, the founder of Medco, then formed a joint venture New Links Energi, which now controls 86 percent of the oil company?s shares.

Sources said that Panigoro family, the founder of Medco, will still become the majority shareholder after CSFB transfers its ownership to other party.(*)