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Jakarta Post

PGN gets shareholders’ approval to acquire Pertagas subsidiaries

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, December 27, 2018   /   04:49 pm
PGN gets shareholders’ approval to acquire Pertagas subsidiaries A building owned by state-owned gas company PGN. (Courtesy of/State-owned gas subholding company PGN )

State-owned gas company PT Perusahaan Gas Negara (PGN) has said it has obtained shareholders’ approval to acquire four subsidiaries of PT Pertamina Gas (Pertagas), in what is another step toward the establishment of a subholding company.

With the agreement, PGN will look to secure US$1.2 billion in funds, as agreed upon in the initial deal on the acquisition of 51 percent of Pertagas shares.

“With the plan [to acquire four Pertagas subsidiaries] approved by the shareholders, we are just waiting for the signing ceremony of the sales and purchase agreement and the closing,” PGN president director Gigih Prakoso said in Jakarta on Thursday as quoted by kontan.co.id.

He said PGN aimed to complete the acquisition process by the end of this year, but he did not reveal the total value of the acquisition and when the document would be signed.

Previously, both PGN and state-owned oil and gas holding company Pertamina, a parent company of Pertagas, planned to complete a deal in September when PGN wanted to acquire 51 percent of Pertagas shares without the four subsidiaries .

However, the inclusion of the subsidiaries in the deal forced the company to postpone the signing ceremony. (bbn)