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Medco to acquire 44.3% stake in Australia’s MacMahon
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A woman walks through the Medco Energi Internasional offices in Jakarta. (Kontan/Cheppy A. Muchlis)
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span style="font-size:14px;">Publicly listed oil and gas company PT Medco Energi Internasional, through its subsidiary PT Amman Mineral Nusa Tenggara (AMNT), is set to acquire 44.3 percent of the shares of Australia-based mining contractor MacMahon Holdings.
On May 4, MacMahon signed an agreement with AMNT to provide mining services at the latter’s Batu Hijau mine in Sumbawa, which produced 798,000 ounces of gold and 216,363 tons of copper last year.
Under the agreement, MacMahon will acquire moving mining equipment from AMNT. In return, it will issue around 954 million new shares priced at 203 Australian cents (16 US cents), equal to 44.3 percent of its enlarged share capital, for Singapore-based Amman Mineral Contractors, which is indirectly owned by AMNT.
Read also: Amman to start smelter construction in early 2018
“The approval of MacMahon’s shareholders is expected to be obtained in July. Under the agreement, the transaction will be completed on or before Sept. 29,” Medco stated in a statement published on the Indonesia Stock Exchange (IDX) website on Friday.
During the first quarter of 2017, Medco booked US$210.26 million in net oil and gas sales, up 60.7 percent year-on-year. It recorded $43.05 million in net profit, marking a more than threefold increase from the $10.2 million earned in the same period last year.
However, Medco’ total liabilities soared by 20.17 percent year-on-year to $2.64 billion following various acquisitions. Medco has stated that it will use one-third of its 2017 capital expenditure, estimated at $150 to $180 million, to repay some of its debts. (hwa)
