Sep 29, 2010

Pertamina-Medco in talks to merge

State Oil Enterprises (Ltd) and PT Medco Energi Internasional Tbk (MEDC) have been intensely talking efforts to create a synergy, including sounding several options, such as operating partnership, merger, and acquisition.
On the other hand, Pertamina's plan to issue bonds and realize the IPO of PT Pertamina Hulu Energi (PHE) is still waiting for approval from the State Ministry for State-owned Enterprises (SOEs) since it has something to do with the completion of financial statement audit and the revision of the profit target for 2010.
VP Corporate Communication of Pertamina Mochamad Harun confirmed the two oil and gas companies had been intensely trying to find a common understanding to create a synergy, especially in the past 3 months.
"We have reached a mutual understanding on synergy platform. We are still conducting review. Some models have also been discussed, such as operating partnership, merger, or acquisition," he informed yesterday as reported by Bisnis newspaper today.
Project Director of Medco Energi Internasional also confirmed the corporate actions of the two companies, adding the two companies had been making intensive discussion over the plan. "However, we cannot yet give concrete information on the synergy." 

Disclosure: No position at the stock mentioned above.

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