Home Investor Corner Indonesian MedcoEnergy Hopes Ophir Transaction Closed in 2Q

Indonesian MedcoEnergy Hopes Ophir Transaction Closed in 2Q

PT Medco Energi International Tbk (IDX:MEDC) issued global bonds US$650 million to acquire British' Ophir Energy Plc - Photo by Ophir Energy

JAKARTA (TheInsiderSrories) – Indonesian investment company, PT Medco Energi Internasional Tbk (IDX: MEDC) targeting the acquisition of Ophir Energy to be completed in the second quarter (2Q) of 2019. The acquisition is considered to be a good step because the company will obtain a portfolio of assets that complement each other, increase scale, diversify, and provide growth that is beneficial to stakeholders.

On March 26, British energy producer, Ophir Energy Plc finally agreed on MedcoEnergi offers, after months of negotiations. The acquisition value agreed is 57.5 pence for each share, higher than what it was previously proposed.

The increased offer values the entire issued and to be issued share capital of Ophir at approximately £408.4 million (US$310.38 million), according to the official statement.

“At the Court Meeting, a majority in number of scheme shareholders, who voted who together represented over 75 percent of the voting rights of scheme shareholders on Ophir’s register of members at the voting record time. The resolution was accordingly passed,” said Ophir management.

The acquisition is expected to strengthening both countries position in Southeast Asia.Ophir has some assets in Indonesia, Thailand, Myanmar, Malaysia, and else.

But it remains subject to other conditions, including the receipt of clearances from the relevant authorities in Tanzania. Moreover, Ophir will not be losing all or substantially all of its Bualuang interests in Thailand.

The negotiation between Ophir and MedcoEnergi has been quite a tug. Ophir several times rejected the energy producer’ offer which proposed for a lower value.

Recently, Singapore water and electricity producer, Hyflux Ltd. rejected the investment proposal of Indonesia’ SM Investments (SMI) Pte Ltd., owned by the company and Salim Group. In its official statement, Hyflux stated that it had sought a written solution to convince the SMI to continue the agreement, but unfortunately the consortium refused to enter into a restructuring agreement and the company had accepted the refusal.

Hyflux will have a meeting with stakeholders at an extraordinary general meeting today to vote on the transaction. Last year, Salim Group joined with Medco Group has signed a binding agreements to invest of S$530 million in Hyplux Group. The agreement has been signed on Oct. 18.

Hyflux Group is a global provider of sustainable solutions based in Singapore. The company specialist in water treatment and among the top global desalination plant providers, and addressed the challenges at every point of the water value chain. The Group has expanded its offerings to include power generation and waste-to-energy and wellness industry with the ELO brand to broaden its consumer market portfolio.

The Salim Group is one of the largest conglomerates in Asia which controls Pacific Light Power Pte Ltd, an 800 megawatts (MW) power genco in Singapore among others. The Group owns various investments around the region, including investments in Metro Pacific Investments Corporation, the largest infrastructure investment management and holding company in the Philippines.

Maynilad Water Services, Inc., the water and wastewater services provider in Metro Manila. Moya Holdings Asia Ltd, the water treatment and distribution provider in Jakarta. Meralco, the private sector electric distribution utility company in the Philippines. PXP Energy Corporation, an oil and gas company and PT Indofood Sukses Makmur Tbk (IDX: INDF), a diversified food, noodle and beverages company; among others.

While Medco Group comprises, among others MEDC, various plantations, property, and a financial institution. MedcoEnergi is an integrated energy and natural resources company with significant interests in oil & gas exploration & production focused principally in Indonesia.

It controls and operates the West Natuna Transportation System Pipeline which delivers gas to Singapore, and is also a major shareholder in PT Amman Mineral Nusa Tenggara, Indonesia’ second largest copper and gold producer.

PT Medco Power Indonesia (MPI), a subsidiary of MedcoEnergy owns and operates clean energy power plants with combined gross capacity of 645 MW including the 330MW Sarulla geothermal power plant, the world’s largest single-contract geothermal project.

MPI also operates and maintains third-party power plants with a total capacity of 2,150MW. MPI will be commencing development of Riau CCPP (275 MW) and Ijen geothermal (110 MW) soon. MPI will continue to prioritise development in the sector of clean and renewable energy.

US$1: £0.76

by Linda Silaen, Email: linda.silaen@theinsiderstories.com

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