Medco cancels overseas unit IPO plan

IDX-listed energy firm PT Medco Energi International Tbk may choose to sell the company's shares in its overseas subsidiary Medco Global through strategic partnership arrangement rather than through private placement or initial public offering (IPO), Kontan daily reported on Wednesday.

MedcoEnergi's president director Hilmi Panigoro said in Jakarta Tuesday that with the current capital market situation, selling the shares through private placement or IPO would not be so attractive.

Helmi indicated that MedcoEnergi preferred selling its shares to strategic investors or companies which operate within the same business activities.

"A number of strategic investors have shown their interest to buy Medco Global," he said. But he declined to name the companies.

Helmi said that MedcoEnergi would sell between 40 percent and 45 percent of Medco Global which has total assets worth about US$1 billion or about Rp 9.2 trillion.

Medco Global comprises of Medco?s overseas upstream assets, including 50 percent stake a Libyan oil block, which is estimated to host hundreds of millions of recoverable barrels. (*)