Medco’s plan to acquire Ophir challenged by some shareholders

Friday, March 8 2019 – 06:02PM WIB

IDX-listed PT Medco Energi Internasional Tbk may face uphill battle in realizing its plan to acquire UK’s Ophir Energy Plc amid opposition from some shareholders of the latter firm.

Kontan quoted a Tuesday Bloomberg report that more than a quarter of Ophir shareholders have opposed the planned acquisition as they demanded for a higher price for their shares. Bloomberg quoted a source familiar with the transaction that Medco will need approval from at least 75 percent of the Ophir shareholders.

Medco President Director Hilmi Panigoro said on February 19 that the Ophir shareholders are scheduled to make a vote on the proposed acquisition at the end of March this year. He said that if majority of the shareholders opposed the planned acquisition, Medco will seek for another acquisition target.

As has been reported, Medco had reached an agreement with Ophir to acquire the UK oil and gas firm for £390.6 million as Medco aims to strengthen its position as a leading independent oil and gas firm in Southeast Asia.

Ophir said that Medco’s wholly-owned subsidiary Medco Energi Global Pte Ltd will acquire the entire issued and to be issued ordinary share capital of Ophir for 55 pence per share.

According to company website, Ophir has a number of upstream assets including in Indonesia such as a 100 percent operated interest in the North East Bangkanai Block, a 70 percent operated interest in the Bangkanai and the West Bangkanai Blocks covering a gross area of 12,352 km2. The company also holds a 67.5 percent operated interest in the Madura PSC, 45 percent operated interest in the Sampang PSC, 49.9 percent operated interest in the West Papua IV PSC, and 60 percent operated interest in the Aru Block covering a gross area of 5,701 km2. (*)

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