CSFB may release Medco Energi shares by 2002

International financial agency Credit Suisse First Boston (CSFB) may release its shares in PT Medco Energi International Tbk by 2002 under the debt to equity swap agreement signed with the oil company, Koran Tempo reported on Tuesday.

The daily?s source said in Jakarta on Monday that the debt to equity swap signed by the two companies in 1999 would end in three years. ?It means that the financial company will have to quit Medco International in 2003,? he added.

According to the source, Medco is currently seeking a new strategic investor to take over the ownership of CSFB. Panigoro family, the founder of Medco, will become the majority shareholder after CSFB transfers its ownership to other party.

Medco?s finance director Sugiharto, however, said he did know about the agreement, which allows CSFB to transfer its ownership in 2003. ?Actually, I am not in the position of answering the questions. It is the shareholders that should answer,? he added.

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.

Sugiharto said earlier that Medco has received a guarantee from CSBF that the later would sell its shares to strategic investors. (*)