Panigoro family blocks Temasek?s move to buy Medco
Wednesday, November 3 2004 - 12:50 PM WIB
Encore International Ltd has decided to exercise pre-emptive right to buy the entire Thai?s PTT E&P 40 percent stake in New Links Energy Resources, a Mauritius based company which owns 85.5 percent shares of PT Medco Energi Internasional Tbk.
Medco's founder Arifin Panigoro through Encore already has a 40.1 percent stake in New Links, while Credit Suisse First Boston holds the remaining 19.9 percent.
Last month, PTT E&P named Singapore?s conglomerate Temasek Holding preferred bidder to buy its stake in New Links.
Medco president Hilmi Panigoro told reporters that Encore would pay US$350 million, the same amount Temasek would have paid if Encore did not exercise its pre-emptive right.
?The transaction is expected to be completed by end of this year,? said Hilmi.
Medco is Indonesia's biggest publicly traded oil company, producing some 90,000 BOEPD. (godang/robert)