PT Medco Energi Internasional announces the completion of divestment of its entire shareholding in Ophir Vietnam Block 12W B.V.(OVBV) to Bitexco Energy Company Limited . OVBV holds a 31.875 percent participating interest in Chim Sao and Dua (Block 12W) oil and gas producing fields located in Vietnam.
“This divestment is in line with Medco Energi’s strategy to actively manage its portfolio through targeted acquisitions and divestments. We appreciate Bitexco’s cooperation during this transaction and look forward to these fields continuing to add value to the new owner.” Medco CEO Roberto Lorato said in a statement.
As previously reported, PT Medco Energi Internasional (MEDC) plans to conduct a share buyback. For this purpose, MEDC has prepared funds of up to Rp 200 billion (US$12.3 million).
If transaction costs, brokerage trading and other costs related to the buyback transaction are taken into account, the total funds disbursed by MEDC are estimated to reach Rp 225 billion.
“The source of funds used as the cost to carry out the buyback is not the proceeds from the public offering and not from loans or debt,” Medco’s management said on Friday, April 19, 2024 as quoted by Kontan.
Based on information disclosure on the Indonesia Stock Exchange (IDX) website released on Friday, Medco will buy back 100 million shares. This is equivalent to 0.398 percent of MEDC’s issued and fully paid-up capital.
Medco’s management explained that the buyback will provide MEDC with greater flexibility in managing its capital and maximising returns to shareholders.
“The buyback will also facilitate the return of excess cash and funds to shareholders in an effective and efficient manner,” the management said.
To execute this corporate action, the oil producer will seek approval from its Annual General Meeting of Shareholders (AGM), which will be held on May 30, 2024.
