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Barito continues expansion, looks at stake in Star Energy
Publicly listed diversified giant PT Barito Pacific is eyeing a controlling stake in the local energy firm Star Energy, marking its continued expansion drive after last year's two major acquisitions
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Publicly listed diversified giant PT Barito Pacific is eyeing a controlling stake in the local energy firm Star Energy, marking its continued expansion drive after last year's two major acquisitions.
Investor relations vice president Agustino Sudjono said on Monday that the company was still discussing the plan, which was initiated last year.
"We are looking for a stake in the company, if it's possible we want the controlling stake," he said, refusing to mention the value of the acquisition and the percentage of the stake that would be acquired, as discussions were still underway.
Agustino also refused to give the time frame when the acquisition could be finalized.
Bloomberg reported in 2008 that Barito was looking at a 51 percent stake in Star Energy, estimated to have a total value of Rp 5.1 trillion (US$494.7 million) at that time.
"We hope that with the acquisition would bring added value to the company," Agustino said over the phone.
Barito is controlled by timber tycoon Prajogo Pangestu, who now sits as the company's president commissioner. It recorded a more than 50 fold increase in revenue last year following the acquisition of PT Chandra Asri and PT Tri Polyta Indonesia, a producer of polypropylene resins.
The company also acquired around a 76 percent stake in Tri Polyta last year, with the transaction value totaling $136.5 million.
It remains unclear how the acquisition would be carried out as Prajogo was last year reported to have bought a 40 percent stake in Star Energy from Supramu Santosa, then president director and CEO.
Under existing regulations, any acquisition deals involving affiliated companies will require shareholders' approval. But Agustino refused to give further comments, saying that the company was still studying all possible alternatives concerning the acquisition.
Star Energy was established in 2003 as an independent company. It is the operator of oil and gas Kakap Block in the Natuna Sea. It also owns Sebatik Block in East Kalimantan, Banyumas Block in Central Java and Sekayu Block in South Sumatra.
Star Energy also has a partnership with state oil and gas firm PT Pertamina in a 400-megawatt geothermal project Wayang Windu in West Java.
