JAKARTA (RambuEnergy.com) – U.K.-based energy company Ophir Energy Plc has rejected the possible offer for Ophir’s shares by Indonesia’s energy company PT Medco Energi Global PTE Ltd, a wholly-owned subsidiary of PT Medco Energi Internasional Tbk (IDX:MEDC).
The company said in a statement that its board has met formally to consider the possible offer announced by Medco on Jan. 11, 2019 to acquire the issued and to be issued share capital of Ophir at an offer price of 48.5 pence per Ophir ordinary share.
“The Board has unanimously rejected the proposal as it undervalues Ophir,” Ophir said in a statement Monday (Jan. 14).
On Jan. 15, Ophir will provide an update on its trading and operations for the twelve month period ending Dec. 31, 2018.
It noted thatt this announcement has been made by Ophir without the approval of Medco or Medco Global.
Medco is yet to make an announcement with regard to rejection of Ophir’s rejection.
On Monday, Medco Energi’s shares trading closed down Rp5 or 0.6% at Rp830 per share.
Last Friday, Medco considered a £340 million offer in Ophir takeover bid. Ophir said that while no offer had yet been confirmed, the Indonesian group had a possible bid in mind of 48.50p a share.
The tie-up would make Medco, which has been expanding its asset base, the seventh largest upstream producer in south-east Asia outside of national oil companies — ahead of the likes of Hess and BP.
Ophir is an independent upstream oil and gas exploration and production company. It is listed on the London Stock Exchange.
Medco is a leading Southeast Asian energy and natural resources company listed on the Jakarta Stock Exchange with a market capitalization of approximately US$ 900 million, operating across three key business segments being Oil & Gas, Power and Mining.
In Oil & Gas, Medco has significant experience in managing complex and mature onshore and offshore assets and moving discovered and challenged resources to production, including LNG.
Medco’s oil and gas assets are based primarily in Indonesia but it is focused on expanding its Southeast Asia presence and adding to its existing international assets in the Middle East and North Africa.
Medco also operates gas, geothermal and hydropower plants in Indonesia through its 88% consolidated interest in Medco Power (12% held by the International Finance Corporation) and has an effective 39% non-consolidated interest in a large Indonesian copper and gold mine. (*)
Edited by Roffie Kurniawan (email: email@example.com)