Medco Energy to Release Subsidiary’s Shares
Wednesday, 14 February, 2007 | 15:27 WIB

TEMPO Interactive, Jakarta: PT Medco Energi Internasional Tbk plans to set up a new subsidiary by the end of this year.

The new subsidiary will accommodate the entire corporation’s assets abroad.

According to Hilmi Panigoro, Medco Energi Internasional’s President Director, after being established, the company plans to release the subsidiary’s shares in the stock exchange.
“The shares release will be carried out through an initial public offering (IPO),” he told Tempo in Jakarta last weekend.

Hilmi has not yet confirmed how many shares to be released and the target of funds that can be obtained from the process.

However, according to a Tempo source, the amount of shares to be sold is to be between 30 and 40 percent.

“It can’t be announced now,” said Hilmi when asked for confirmation about the matter.

He went on to say that up to now the company was still preparing measures to set up the subsidiary and release the shares.

However, “It is expected that all processes can be completed by the end of the year,” said Hilmi.

This corporate action, according to Hilmi, is aimed at optimizing the company’s assets abroad.

Another goal is for the new company’s business activities, which have higher risks. will not disturb the company’s cash flow.

Sebastian Tobing, a mining sector analyst from PT Trimegah Sekuritas, said he considered that Medco Energi’s corporate action will have a positive impact on the company’s shares fluctuation on the stock exchange.

Sebastian suggested that ideally the share listing be carried out at a stock exchange abroad.

“Bear in mind that the company’s assets are also abroad,” he said.

Sebastian went on to say that Medco Energi should prepare options for selling some of the new business shares to strategic partners that are already experienced in exploration and production activities.

Desy Pakpahan