Panigoro close to regain full control of Medco

Panigoro family, founder shareholder of JSX-listed oil, gas firm PT. Medco Energi International Tbk. is close to seal acquisition of New Links Energy Resources shares that will bring the family back into full controlling position in Medco, a company official said Tuesday.

Medco director Rashid Mangunkusumo told Petromindo.Com that acquisition process is near completion and expected to be signed ?soon?. ?The deal will is now in the hands of the lawyers and will be signed as soon as lawyers from both sides agree on details,? he said.

New Links, which holds 85.51 percent shares in Medco, is currently owned by Panigoro-controlled Encore Limited (40.1%), Thai firm PTTEP Offshore and Cumin Limited, a unit of Credit Suisse First Boston (19.9 %). Cumin and PTTEP have previously selected Everitt Investments Pte Ltd, an investment company linked to Singapore?s Temasek Holdings Limited, as the preferred bidder to acquire a combined of 44.9 percent shares in New Links, while the remaining 15% of shares owned by PTTEPO was offered to Encore.

Encore, however, decided to exercise pre-emptive right to acquire the remaining shares of New Links it did not own, forcing Everitt to drop its plan to acquire New Links shares.

Medco is one of Indonesia?s top producers, flowing 60,000 barrel of oil per day from its oil fields. Medco has interest in more than a dozen oil, gas concessions that spans across Indonesia.

Panigoro family was forced to sell part of its shares in New Links due to economic crises that hit Indonesia several years ago.(godang)