Medco confirms CSFB?s offer to sell stake to Panigoro, PTTEP

JSX listed oil producer PT Medco Energi International confirmed Tuesday that Credit Suisse First Boston (Hong Kong) Limited (CSFB) had offered its 16 percent indirect stake in the company to Encore Ltd and PTTEP Offshore Investment Company Ltd of Thailand, Bisnis Indonesia daily reported.

?CSFB has offered its indirect stake in Medco to Encore and PTTEP, in keeping with the normal practices in shares trading,? said Gamala V. Katoppo, head of Medco?s Corporate Research & Information Section.

Medco is 86 percent owned by Mauritius-based New Links Energy Resources Ltd. CSB has 19 percent ownership in New Links, while Encore and PTTEP respectively own 40.1 and 40 percent. The Panigoro family controls Encore.

PTTEP is the Indonesian affiliate of Thailand?s PTT PCL.

Gamala said that if PTTEP and Encore bought CSFB?s indirect stake in Medco, it would be evenly divided between them.

Earlier reports said that PTT PCL, which has a 61 percent stake in PTTEP, would look at investing more funds into Medco if PTTEP considers the investment sound enough.

?The issue of further investment in Medco depends upon PTTEP along with a whole range of issues such as the price, pre-requisite and the returns that we could make on these investments,? PTT PCL president Viset Choopiban was quoted as saying. (*)