Mitsubishi likely to own Medco?s holding company
Wednesday, July 25 2007 - 01:22 AM WIB
Japanese giant firm Mitsubishi Corp. will most likely acquire a 20 percent stake in Panigoro family-owned Encore Limited, the parent company of JSX-listed energy firm PT Medco Energi International, a source said.
An executive well informed about the divestment plan said that another bidder Aabar Petroleum Investments Company from Abu Dhabi had resigned from the bidding for the 20 shares worth US$350 million divested in Encore Limited on inaccurate technical data.
“So, Mitsubishi is most likely to win the divestment bidding,” he said as quoted by Bisnis Indoensia.
Medco’s President Director Hilmi Panigoro declined to give further information on the divestment plan, saying that no transaction has been made and that the pre-transaction process was confidential in nature.
The executive said that the process of divesting Encore started in November last year, with five companies joining the bid.
On Nov 2006, the source was quoted by Bisnis Indonesia as saying that the five investors are Mitsui, Mitsubishi, Abu Dhabi-based Aabar Petroleum Investments Company, a Kuwaiti company and a local company. It is not clear who the domestic investor is.
Encore, a company based in British Virginia Island, is the parent company of Medco Energi, with 50.7 percent stake owned by Panigoro family. (*)