In­done­sia’s Medco En­ergi could of­fer $435mn for Bri­tain’s Ophir

Gulf Times Business - - BUSINESS -

In­done­sia’s Medco En­ergi In­ter­na­sional Tbk PT said yes­ter­day a pos­si­ble all-cash takeover of­fer by its unit for Ophir En­ergy would value the Bri­tish firm at £340mn ($435.88mn).

Medco said share­hold­ers of Ophir, an up­stream oil and gas ex­plo­ration and pro­duc­tion com­pany fo­cused on Asia and Africa, would re­ceive 48.5 pence in cash for each Ophir share.

Un­der Bri­tish takeover rules, Medco’s fully-owned sub­sidiary PT Medco En­ergi Global has un­til Jan­uary 28 to make a firm of­fer or walk away. An­a­lysts have said a deal with Ophir would boost Medco’s val­u­a­tions and help it gain ac­cess to in­ter­na­tional as­sets. The price rep­re­sents a 46.1% pre­mium to Ophir’s share close of 33.2 pence on De­cem­ber 28, the last busi­ness day be­fore Medco Global an­nounced the pos­si­ble of­fer for Ophir.

Ophir did not im­me­di­ately re­spond to a re­quest for com­ment.

Ophir, whose shares fell 47% in 2018, has said it ex­pects to re­port a non-cash write down of $300mn on a liq­ue­fied nat­u­ral gas project in Africa and that it would shift its head­quar­ters from Lon­don to Asia, where it bought as­sets in 2018.

Founded by oil and gas ty­coon Arifin Panig­oro, Medco has made size­able ac­qui­si­tions in re­cent years, in­clud­ing lead­ing a $2.6bn pur­chase of the In­done­sian unit of New­mont Min­ing Corp in Novem­ber 2016.

It also op­er­ates power plants in In­done­sia. Medco, head­quar­tered in Jakarta, earns the bulk of its rev­enue from oil and gas op­er­a­tions, mainly in In­done­sia.

The firm has fo­cussed on ex­pand­ing its South­east Asia pres­ence and adding to its ex­ist­ing as­sets in the Mid­dle East and North Africa.

Stan­dard Char­tered Bank is act­ing as fi­nan­cial ad­viser to Medco.

Newspapers in English

Newspapers from Qatar

© PressReader. All rights reserved.