Six firms may bid for Medco's stake in unit

The Jakarta Post, Jakarta --- Six potential investors have been short-listed to bid for the 51.3 percent stake of oil and gas firm PT Medco Energi International in its subsidiary PT Apexindo Pratama Duta -- one of the country's top drilling contractors.

One of the six bidders is PT Bormindo Nusantara, also a drilling contractor, according to an online report.

"There are six companies that have been short-listed and we are one of them," M. Ramdani Basri, a Bormindo commissioner, told Detik.com news portal on Thursday.

When contacted by The Jakarta Post, Apexindo president director Hertriono Kartowisastro refused either to confirm or deny the report.

Ramdani said Bormindo is in the preliminary stages of a due diligence and will soon submit its price valuation.

Asked about the source of the funds, he said the company planned to seek loans from banks and other financial institutions.

"We are indeed seeking the funding, but most likely not from domestic sources," he said.

Medco, the country's largest publicly listed oil and gas company, wants to sell its stake in Apexindo so it can focus on its core business.

Acting as the divestment financial adviser is Credit Suisse Global.

Previously, Medco offered the stake to around 50 potential investors.

Established in 1984, Apexindo offers drilling services to oil, gas and geothermal companies. In July 2002, it became the first drilling contractor listed on the Jakarta Stock Exchange. (JP/Astrid Wibisono)