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akarta-listed oil and gas company PT Sugih Energy is planning to take over a 51 percent stake in one of its shareholders, Ramba Energy Limited '€” a move likely for business consolidation reasons.

According to an announcement submitted to the Indonesia Stock Exchange (IDX) and an offer document to the Singapore Stock Exchange (SGX) late last week, Sugih is offering S$0.65 (51 US cents) for each of the 174.79 million shares in Ramba Energy, which is listed on the SGX, through its wholly owned subsidiary Sugih Energy Pte. Ltd.

Given the share value, the acquisition will be worth S$111.87 million.

'€œThere are a number of financing plans from external sources,'€ Sugih president director Andhika Anindyaguna said over the weekend, declining to elaborate as, he said, more details would soon be available.

Andhika said the company had informed Indonesia'€™s Financial Service Authority (OJK) about the plan and an exact date for a shareholders'€™ extraordinary meeting, to obtain approval from shareholders, would be announced soon.

'€œOur target is to finish this before the year-end,'€ he said.

The acquisition of Ramba Energy will mean Sugih would hold 100 percent stake in Lemang PSC, an oil and gas block in Sumatra.

Sugih, through its subsidiary Eastwin Global Investment Ltd., currently holds 49 participating interest in Lemang. Meanwhile, Ramba, also through its subsidiary PT Hexindo Gemilang Jaya, holds the other 51 percent.

'€œWe see this acquisition as a strategic move. Beside consolidating Lemang, there are also two more assets owned by Ramba Energy,'€ Andhika said.

Ramba Energy now has 100 percent working interest in West Jambi KSO in Sumatra and 70 percent in Jatinangor TAC in West Java, both are oil and gas blocks.

Sugih'€™s plan to acquire Ramba Energy seemed to be a move by an owner to consolidate their oil and gas portfolio under one roof.

Ramba Energy was a big shareholder in Sugih from 2010 (55 percent) to 2012 (39 percent).

In mid-2012, Sugih held a preemptive rights issue, in which Ramba Energy did not subscribe to the shares issued and gave the rights to Singapore-based trust fund company Goldenhill Energy Fund.

According to 2012 rights issue prospectus, the ownership of Ramba Energy in Sugih was reduced to
0.64 percent following the corporate action.

Sugih is currently 22.24 percent owned by Goldenhill Energy Fund, 5.32 percent by DMG & partners Securities Pte. Ltd. and 72.44 percent by the public.

Ramba Energy is controlled by the Soeryadjaya family.

Edward Soeryadjaya '€” son of William Soeryadjaya, founder of giant conglomerate PT Astra International '€” holds 31.83 percent stake in Ramba Energy, according to the company'€™s financial report of December 2012.

Ramba Energy'€™s chief executive officer is Aditya Wisnuwardana Seky Soeryadjaya, Edward'€™s eldest son.

Andhika said Sugih and Ramba Energy may not be affiliated but they have a common shareholder.

However, according to the offering proposals submitted to the SGX, Goldenhill is structured as a discretionary unit trust fund and all the units in the funds are held through companies wholly owned by Edward, which comprise Ortus Holdings Limited and its subsidiaries '€” namely Ortus Capital Partners Ltd. and Ortus Infrastructure Capital Ltd. (OICL). OICL is the sole unit holder of Goldenhill.

Sugih reported $4.75 million in revenue in the first half of the year, a massive jump compared to $1.34 million in the same period last year.

However, soaring costs meant the company booked $4.09 million in net loss in the first half of the year, a significant setback compared to a net loss of only $945,707 in the same period last year.

Shares in Sugih were traded on the IDX under the code SUGI at Rp 435 (about 4 US cents) apiece on last Friday, unchanged from the previous closing.