Mitra Investindo to complete acquisition of Benakat Oil this year
Friday, July 1 2016 - 05:19 AM WIB
IDX-listed PT Mitra Investindo Tbk ( MITI) hopes to be able to complete the planned acquisition of 23.44 percent shares of PT Benakat Oil this year.
Yoyong (one name), Finance Director of MITI, said that the company is scheduled to hold an extraordinary shareholders meeting this month to seek approval for a planned rights issue to help finance the acquisition program.
?The rights issue proceeds will be used to help finance the acquisition worth Rp 71.37 billion,? he said on Wednesday.
He said that after raising the funds, MITI will also have to seek the approval of the Investment Coordinating Board (BKPM) because Benakat Oil is a foreign investment company. Once approved by BKPM, the acquisition is final.
Yoyong said that oil and gas business will become the company?s main sole of revenue as it has sold its granite concession on Bintan Island, a process that is also expected to be completed this year.
MITI currently owns the Linda Sele oil and gas field, in West Papua, following the acquisition of 90 percent shares of Goldwater LS Pte Ltd from Interra Resources Ltd in 2014. Last year, sales volume from the concession stood at 6,669 barrels. Yoyong said that production from Linda Sele is expected to increase this year.
MITI signed a conditional sale and purchase agreement on May 20 of this year with PT Pratama Media Abadi (PMA) and PT Benakat Oil (BO) for the acquisition by MITI of 23.44 percent of the issued and paid-up share capital of BO and translates into an indirect holding of 21.79 percent of PT Benakat Barat Petroleum (BBP).
BBP is a limited liability company incorporated under the laws of Indonesia. Pursuant to an operations cooperation agreement (the Benakat Barat KSO) entered into between BBP and PT Pertamina EP on March 16, 2009, BBP holds an undivided 100 percent interest in the Benakat Barat KSO and has the rights and obligations to exploit, develop and explore for hydrocarbons in the Benakat Barat field in South Sumatra.
Editing by Reiner Simanjuntak