Govt approves acquisition of PGN by Pertamina

The government has approved the proposed acquisition of state-controlled gas distribution firm PGN by state-owned oil and gas firm PT Pertamina, which will merge the former company with the latter?s gas distribution arm PT Pertamina Gas (Pertagas).

The decision for the merger was made during a meeting between State Minister of State Owned Enterprises Dahlan Iskan and top officials of Pertamina on January 7, 2014. According to minutes of the meeting, a copy of which was obtained Sunday, the newly merged company will become a subsidiary of PT Pertamina.

Under the merger plan, Pertamina will own 30-38 percent shares in the new company, the government to get 36-40 percent shares, and the public investors in IDX-listed firm PGN to get 26-30 percent shares.

Pertamina Commissioner M. Yasin said that the merger process is expected to take about eight months to complete. (*)