Medco sells 19.9% share to Mitsubishi
Friday, August 24 2007 - 02:51 AM WIB
Publicly listed energy firm PT Medco Energi International has sold a 39.4 percent stake in British Virgin Island-based parent company Encore Ltd to Mitsubishi Corp. for $352 million.
The transaction effectively gave the 's largest trading company a 19.9 percent share in MedcoEnergi. Encore through Densico Energy Resources Pte Ltd and Aman Energy Resources Pte Ltd controls 50.7 of MedcoEnergi.
MedcoEnergi’s president Hilmi Panigoro said in a statement the company had decided to sell the stake to the strategic partner in order to create a stronger base for the future growth of the company.
The investment will help Medco, which plans to invest $1.4 billion in the three years ending 2010, to develop domestic oil and gas areas and boost production, Hilmi said.
MedcoEnergi will also use the proceeds from the share sale to repay its loan totaling US$200 million. (*)