Medco Energy To Acquire Ophir Energy

1 year ago . 1 min read
EC
Ester Christine Natalia
Senior Writer at Forbes Indonesia
Medco Energy To Acquire Ophir Energy
Medco Energy To Acquire Ophir Energy. (Source: Flickr)

Energy company PT Medco Energi Internasional to buy London-based oil and gas company Ophir Energy for £390.6 million. Both companies signed the letter of acquisition on January 30. The acquisition will be done through Medco’s subsidiary PT Medco Energi Global Pte.Ltd, with an agreed price per share of 55 pence (£0.55), reflecting 65.7% premium than Ophir’s market price as of December 28 of 33.20 pence.

Medco aims to further strengthen its position as a leading independent oil and gas player in Southeast Asia by acquiring Ophir oil portfolios and gas assets. It also expects production to increase 29%, while reserves and resources surge 117% in 2019 with the acquisition. Ophir owns diversified portfolio of quality producing, development and exploration assets in Indonesia, Thailand, Vietnam, Malaysia, Mexico and Tanzania.

“The combined business will hold a more balanced regional portfolio of producing and development assets, better able to withstand macroeconomic volatility, and will have meaningful production and cash flows to improve Medco’s credit position and the ongoing development of the portfolio,” says Medco CEO Roberto Lorato in a statement.

In the recent years, Medco is actively acquiring a number of companies related to oil and gas sector, one of them is the acquisition of the Indonesian unit of Newmount Mining Corp that cost $2.6 billion in November 2016.

Medco is own by the Panigoro family and was established in 1980 and has been listed on the Indonesia Stock Exchange since 1994, while Ophir was founded in 2004 and has been listed on the London Stock Exchange since 2011.

EC
Written By
Ester Christine Natalia
Senior Writer at Forbes Indonesia
Topics
Business