Singapore's Temasek named preferred bidder for Medco stake: Rumors
Thursday, October 14 2004 - 06:04 AM WIB
Medco's shares jumped by more than 21 percent in the morning session on Thursday at the Jakarta Stock Exchange.
PTTEP owns a 40 percent stake in New Links Energy Resources, which controls 85.5 percent of Medco.
"People are talking about Temasek being named as the preferred bidder. So, it is most likely that the New Links stake sale is going to happen," an institutional dealer with a local brokerage told AFX.
Another dealer with BNI Securities said there may be some substance to the rumors, given the heavy trading activity.
Medco Energi investors relations head Wira Katoppo said Medco has yet to be informed about the matter.
"It (the stake sale) is a shareholders' matter, in this case it is New Links'. So, we will just wait. When there is any information coming from New Links, we will disclose it," Katoppo said.
Medco president Hilmi Panigoro has said that PTTEP is considering withdrawing its stake in New Links following Medco's expansion into the electricity sector. PTTEP has said it wants to focus on only the oil and gas business.
The remaining shareholders of New Links are Encore International Ltd, with a 40.1 percent stake, and Credit Suisse First Boston with a 19.9 percent stake. (*)