Medco to sell one of its subsidiaries

IDX-listed Oil and gas company Medco Energy International Tbk plans to sell one of its subsidiaries PT Medco Ethanol Lampung as part of its program to focus on its core business in oil and gas sector, Kontan daily reported on Thursday.

Medco?s Corporate Secretary, Imron Gozali, said the company was still in talks with a number of local companies to sell the Lampung-based ethanol producer.

?We have talked to a number of strategic partners, and we hope the sale could be realized soon,? he said, adding that the divestment would be part of Medco?s program to focus on its core business.

According to Imron, Medco Ethanol is a profitable company, but it often faces difficulties in obtaining raw materials for its production.

Medco has earlier divested a 51 percent stake in PT Medco Sarana Kalibaru (MSK) to Puma Energy LLC and another 51 percent stake in PT Medco Power Indonesia to Saratoga Capital. Medco raised about US$112 million from the sales of its stakes in the two companies. (*)