The Jakarta Post
State-owned gas distributor PT Perusahaan Gas Negara (PGN) officially became a gas subholding company on Friday after acquiring PT Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas holding company Pertamina, at a total valuation of Rp 20.18 trillion (US$1.39 billion).
“Today, PGN marks a new chapter as it has become a subholding company after having completed the acquisition of Pertagas and its subsidiaries,” PGN president director Gigih Prakoso said during the signing of a sales and purchase agreement of Pertagas shares between Pertamina and PGN.
He said the parties involved had carried out a process of due diligence, valuation and audits for the financial reports of Pertagas and its subsidiaries.
“Thank God that all stages of the process have been implemented and were agreed upon by internal parties in PGN and Pertamina,” he said, adding that, under the deal, PGN controlled all shares of Pertagas and its subsidiaries, not just 51 percent of the company's shares as initially planned.
Gigih said payments for the acquisition would be carried out in two stages, with a Rp 10.09 trillion cash payment to be made for 50 percent of the shares, while a payment for another 50 percent of shares would be carried out through the issuance of promissory notes.
Pertagas president director Wiko Migantoro said that, after the deal, Pertagas would become a subsidiary of PGN. “PGN and Pertagas are ready to become strategic tools for the country in making natural gas an engine of growth,” he said. (bbn)