Medco eyes fertilizer firm AAF

Publicly-listed oil and as company PT Medco Energi Internasional is interested in buying fertilizer company PT Asean Aceh Fertilizer (AAF), which is located in Nanggroe Aceh Darussalam province, the Investor Daily Indonesia newspaper reported in its Thursday edition.

According to Alita Ilyas, a member of the AAFliquidation team, Medco will participate in the open tender for the assets of AAF like factory, warehouse and an office in Lhokseumawe, Aceh.

?Medco has already expressed its interest long back. Besides Medco, an Australian investor has also expressed interest through phone talks in buying (AAF). But we never met the investor face to face,? Alita, who is also the former director of production at the non-functioning AAF, told the Investor in Jakarta recently.

When the Investor Daily asked for confirmation, Medco?s director of business development Rashid I Mangunkusumo said his company wanted to participate in AAF tender.

?There?s an intention, But not necessarily we will buy it. It is too early to say we will or will not buy it,? Rashid said.

AAF used to produce urea and liquid ammonium. It was jointly established by the countries of ASEAN region. Indonesia has 60 percent stake through PT Pupuk Sriwijaya, Malaysia 13 percent through Petronas, the Philippines 13 percent through National Fertilizer Corporation, Thailand 13 percent through Ministry of Finance and Singapore 1 percent through Themasek Holding Pte Ltd.

During their shareholders meeting in September 2005, AAF owners had agreed on the liquidation of the company. (*)