Medco to decide on Novus acquisition soon

Jakarta-listed oil and gas company PT Medco Energi International Tbk is still undecided whether to raise its offer price in a bid to take over Australian oil and gas company Novus Petroleum Limited.

Chief operating officer Rashid Mangkusumo said Medco would meet with its largest shareholder New Links Energy Resources to decide on the matter. ”We hope to make decision soon,” said Rashid.

New Links controls 85 percent of Medco’s outstanding shares. New Links shareholders consist of Credit Suisse First Boston (19.9 percent), PTT Exploration & Production (40 percent) and a company controlled by Arifin Panigoro (40 percent).

Last December Medco launched offmarket take over bid to acquire Novus by offering shareholders A$1.74 per share. The offer values the equity in Novus at A$326.5 million. Later, Novus CEO, Bob William, together with Hong Kong-based Crosby Capital Partners launched rival bid by offering shareholders $1.77 per share. Novus independent directors had advised Novus shareholders to take no action on the offers as they considered none the offers reflected Novus’ value.

Among Novus’ crown assets are 50 percent interest in Brantas PSC block in East Java and 25 percent interest in Kakap PSC offshore Natuna.

Early this week, Santos Petroleum had signed agreement, that, subject to Bob Williams/Crosby acquisition on Novus, it would purchase Novus’ Indonesian and Cooper Basin assets for US$ 191 million. (godang)