Medco confirms stake-sale talk with Mitsubishi

Publicly listed oil and gas firm PT Medco Energi International Tbk has confirmed that it is in talks with Japanese firm Mitsubishi over a possible acquisition by the Japanese firm of a stake in Medco's holding company.

 

"We are talking with Mitsubishi. Let's see the result one month from now," Medco's chief commissioner Arifin Panigoro said on Thursday.

 

On Wednesday, Bisnis said Mitsubishi is likely to acquire a 20 percent stake in Panigoro family-owned Encore Limited, the parent company of JSX-listed Medco.

 

Quoting an anonymous executive, the paper said another bidder Aabar Petroleum Investments Company from Abu Dhabi had resigned from the bidding for the 20 shares worth US$350 million in Encore on inaccurate technical data.

 

"So, Mitsubishi is most likely to win the divestment bidding," the executive said.

 

Based in British Virginia Island , Encore is 50.7 percent owned by the Panigoro family. (Bernard)