Govt finally sells 5.31 percent shares in PGN

The government finally agreed on Friday to divest its 5.31 percent shares in state-owned gas distribution firm PT Perusahaan Gas Negara Tbk (PGN).

"PGN?s shares are priced at Rp11,350 per share, an increase of Rp50 from the previous closing price of Rp11,300 per share," Danareksa Sekuritas?s director Orias Moedak, told reporters in Jakarta Friday.

PGN?s divestment oversubscribed up to 2.7 times, with around Rp2.1 trillion raised from the sale of the shares, he said.

With the divestment, the government?s shares in PGN has decreased to 54.06 percent from the previous 59.37 percent.

PT Danareksa Sekuritas, PT Bahana Sekuritas and Credit Suisse acted as the sale agent for the PGN?s divestment.

Earlier, the government is hoping to raise Rp 3 trillion from the sale to plug the budget shortfall, which is expected to come in at Rp 37.6 trillion, or 1.2 percent of gross domestic product.

The government managed to raise Rp 1.2 trillion from the company?s initial public offering in 2003, although it had to cancel selling 7.3 percent of PGN last year due to strong opposition from the House of Representatives. (godang)