Bapepam disapproves sales of Medco's stake in Lapindo
Friday, May 11 2007 - 01:58 AM WIB
The Capital Market and Financial Institution Supervisory Board (Bapepam-LK) has refused to approve publicly-listed national oil and gas firm PT Medco Energi International's plan to sell its stake in the troubled firm Lapindo Brantas Inc.
Medco owns a 32 percent stake in the firm through subsidiary Medco Brantas.
Medco sold its stake in Lapindo at a price of US$100 to PT Prakarsa Cipta Abadi and PT Prakarsa Cipta Selaras, which are the subsidiaries of Perkasa Group on March 16, 2007.
According to Medco, both firms get financial supports from Minarak Labuan Co. Ltd which will cover Medo's financial liabilities arising from mudflow coming from an exploration well in East Java owned by Lapindo Brantas.
Chairman of the capital market watchdog Fuad Rahmany said that the transaction was categorized unfeasible because Medco had yet to submit the financial statements of Perkasa Group and Minarak despite that the agency had asked for the documents twice.
“Bapepam has been asking for the financial statements of the two companies because we want to see their capability of fulfilling Medco Brantas’ liabilities. (*)