Pertamina interested to acquire Coastal Energy

State oil and gas company PT. Pertamina said that it had an interest to acquire TSX-listed oil and gas company Coastal Energy Co.

Coastal Energy Co., which is based in Houston, is an international oil and gas exploration and production company with a market value of about $2.2-billion as of TSX trading on Tuesday at midday (November 6 of 2012).

According to a letter obtained by the Financial Post and dated October 2012, Pertamina expressed an ?ongoing interest in Coastal Energy? after making an initial expression of interest in September surrounding a joint venture with Calgary-based Talisman Inc. In the letter, Pertamina states it is interested in pursuing Coastal Energy on its own and is prepared to pay a 15% premium to Coastal?s share price at or around US$23 per share or $2.6-billion.

The Indonesian state-owned company said it is seeking Coastal Energy advisor Citigroup?s ?cooperation to complete additional due diligence which will enable us to deliver a binding proposal, subject to the framework defined within this letter.?

Unlike other Canadian oil and gas companies targeted by foreign state-owned companies in recent months, Coastal does not have any Canadian-based operations. Its assets are in Thailand and Malaysia and any takeover bid is unlikely to come under close government scrutiny. (*)