PT Perusahaan Gas Negara Tbk officially Take Over Four Unit Businesses of Pertagas, a Unit of Pertamina last week - Photo by SOEs Ministry

JAKARTA (TheInsiderStories) – Indonesia’ gas producer, PT Perusahaan Gas Negara Tbk (IDX: PGAS) acquired PT Pertamina Gas (Pertagas) for Rp20.18 trillion (US$1.14 billion). The Sales Purchase Agreement was signed by state-owned energy producer, PT Pertamina and the gas producer at the SOEs ministry office on Friday (12/28).

The acquisition is part of the establishment of holding company in energy sector by State Own Enterprises (SOEs) ministry, which was officially established on April 11, 2018. Previously, Pertamina has acquired PGAS to form the oil and gas holding.

“We have officially become the Gas Sub Holding because the acquisition process of Pertagas and all of its subsidiaries has been completed,” said PGAS’ President Director Gigih Prakoso on the sidelines the event.

On the last agreement signed on June 29, both parties have decided only acquiring one of Pertagas’ unit, PT Pertagas Niaga. But, during the negotiation they agreed to include PT Perta Arun Gas, PT Perta-Gas, PT Perta-Samtan Gas, and PT Perta Kalimantan Gas.

Followed the deal, the state-owned gas producer will spend Rp16.60 trillion for 2,591,099 shares or 51 pecent of Pertagas Niaga shares. While the rest funds for other companies under Pertagas.

In details, the akeover payment scheme will be carried out in two stages. Firstly, 50 percent of the total purchase price or equivalent to Rp10,09 trillion will use the cash payment scheme. Secondly, the company will issue a Promissory Note for the rest of the shares

President Director of Pertagas, Wiko Migantoro, revealed that with the completion of the synergy process of PGAS and his company, the oil and gas holding process is expected to reach an important stage and a number of objectives as government mandates.

By this process, Pertamina will direct PGAS to manage the gas business in an integrated manner in Indonesia as stipulated in Government Rule Number 06 Year 2018. In addition, PGAS and Pertagas as the main managers of natural gas downstream activities will become stronger and become the country’s strategic tools in realizing the government’s vision to encourage natural gas as an engine of growth.

US$1: Rp14,500

Written by Daniel Deha, Email: theinsiderstories@gmail.com