LCGP injects US$48 million into Blue Sky Langsa

PT Laguna Cipta Griya Tbk (LCGP), a publicly listed property company, has signed a partnership agreement with Blue Sky Langsa Ltd as part of its program to change its core business into oil and gas operations, Kontan reported on Thursday.

As part of the cooperation agreement, LCGP will inject US$48 million in cash to Blue Sky, which operates Langsa oil block in Malaka Strait. LCGP will in return receive 55 percent of the company?s earnings, the remaining 45 percent for Blue Sky.

?The money to be injected into Blue Sky will be taken from proceeds of right issue and the sales of property assets,? LCGP?s director Danny Boestami said.

LCGP plans to raise Rp 364 billion from the sales of the new shares in the right issue, and another Rp 100 billion from the sales of property assets in Palembang and Cilegon.

Blue Sky has agreed to become a standby buyer of the right shares , which will enable it to buy the shares if existing shareholders did not exercise their rights. (*)