Five investors eye Medco?s holding company

At least five investors are eyeing to buy 25-30 percent shares of Encore Limited, the holding company of the oil and gas company PT Medco Energi Internasional (Medco), Bisnis Indonesia reported Wednesday.

The British Virginia Island-based Encore Ltd has 50.7 percent stake in Medco. Currently, the Encore is fully controlled by Panigoro family.

The source said the five investors are Mitsui, Mitsubishi, Abu Dhabi-based Aabar Petroleum Investments Company, a Kuwaiti company and a local company. It is not clear who the domestic investor is.

All the five probable buyers have already conducted due diligence by examining the data on Medco. "It (the process) started early this week and would continue until the end of November,? an executive who knows about the transaction said.

For this transaction, Encore has hired Credit Suisse as its financial advisor, the source added.

The company?s president director Hilmi Panigoro, said that the information about selling of Encore shares is just rumor.

?There is no plan towards that. Encore?s loan will be due in February 2008,? Hilmi said. (*)