Medco revives rights issue plan

By Romel S. Gurky

IDX-listed energy company PT Medco Energi Internasional Tbk announced Wednesday it would hold an extraordinary shareholders meeting on September 8 to get approval for a planned rights issue.

The company said that it was hoping to raise up to Rp 1.94 trillion in proceeds from the rights issue, about 70 percent of which to be used to repay debts, and the remainder 30 percent for working capital including that resulted from asset acquisition.

Medco recently signed an agreement to acquire 82.2 percent stake in gold and copper giant PT Newmont Nusa Tenggara.

The company initially planned to get approval for the rights issue plan at a shareholders meeting in June, but failed to do so as the meeting did not reach the required quorum. Under the initial plan, Medco was targeting to raise up to Rp 4.6 trillion in proceeds.

Editing by Reiner Simanjuntak