Encore buys 31.7 percent of Apexindo shares

The Panigoro family has bought 31.1 percent shares of IDX-listed drilling firm PT Apexindo Pratama Duta through Encore International Limited, allowing the company to gain a direct control in Apexindo, Kontan daily reported on Tuesday.

Yani Panigoro, the director of Encore, confirmed in Jakarta on Monday about the acquisition of Apexindo's 31.7 percent shares, saying the company had spent at least Rp 2 trillion (1US$=9,185) for the share purchases.

The family which indirectly owns Apexindo through PT Medco Energi Internasional (MedcoEnergi) bought the 31.7 percent shares from Asia Investment Funds SPC and Asian Opportunities Fund I, which held 15.85 percent ownership each in Apexindo.

In the transaction carried out in February, this year, the Panigoro family bought Apexindo shares at an average price of Rp 2,400 per share, about 35 percent above the closing prices before the transaction was made.

Encore International, through its subsidiary Encore Energy, owns 51 percent share in MedcoEnergi, which in turn holds 48.87 percent in Apexindo.

Earlier, MedcoEnergi planned to divest 51.4 percent of its share in Apexindo. A number of foreign investors have expressed interest to take over Apexindo but MedcoEnergi rejected the offer because their bidding prices were still far below the company's expectation.

Yani said that Encore might sell Apexindo in the future. "But we do so, it will be a part of a package," Yani said without elaboration. (*)