Indika Energy to sell 20-30% ownership in Petrosea

Indonesia-listed energy firm PT Indika Energy Tbk plans to reduce its ownership in PT Petrosea Tbk by selling a part of its shares to public within the next three months.

Indika?s president director Wishnu Wardhana said in Jakarta on Wednesday that the divestment would be carried out after Petrosea had held its stock split so that the share price which is now about Rp 37,500 per share could be reduced to make the shares more attractive to public investors.

At present, Indika, one of Indonesia?s major coal producers, owns 98.55 percent in Petrosea which is engaged in engineering, construction and mining company.

Wishnu said that the divestment would be intended to increase the shares held by the public to between 20 percent and 30 percent. The proceeds from the divestment would be used to finance Indika?s expansion program.

Meanwhile, Petrosea said it had allocated about US$100 million in capital expenditure this year to finance the company?s expansion projects which would include the procurement of new heavy equipment. (*)