MedcoEnergi to Bring AMNT IPO Soon, Creates JV with Japans Kansai

PT Medco Energi International Tbk (IDX: MEDC), targeting to bringPT Amman Mineral Nusa Tenggara (AMNT) listing (IPO) in this year or in 2021 -Photo by the Company

JAKARTA (TheInsiderStories) Indonesian energy firm, PT Medco Energi International Tbk (IDX: MEDC), targeting to bringPT Amman Mineral Nusa Tenggara (AMNT) listing (IPO) in this year or in 2021, said the management on Monday (09/07). The planned part of the issuer asset divestment program that has been running since 2017 until 2020.

The producer seeks US$464 from the divestment process. The issuer has acquired 50 percent shares of PT Amman Mineral Investama (AMIV), the indirect controller of 82.2 percent shares of AMNT in November 2016 with valued of $650 million.

The operator managed 25,000 hectares of Batu Hijau copper and gold mine in Sumbawa, Nusa Tenggara. In 2018, MedcoEnergi monetized the unit loans by converting the debt into shares. At that time, there was also an exchange transaction 50 percent of AMIV shares to 39.35 percent shares of PT Amman Mineral Internasional (AMI), AMNT direct controller.

Then, the producer succeeded in releasing 10 percent of AMI shares to PT Sumber Mineral Citra Nusantara worth of $202 million in 2020. The company that rumoring related to the Bakrie Group has paid $10 million on April 7, 2020, and the remaining payment will be paid before March 31, 2021.

The management did not specify the information regarding the buyer, only emphasized that the company is not affiliated with the company. There are also an additional option to sell 10 percent of AMNT shares during the IPO.

On Monday, the company announces its wholly owned-subsidiary, PT Medco Power Indonesia (MPI) and Japan Kansai Electric Power Co., has signed an agreement o buid gas-fired power producer in Indonesia. According to the CEO,Roberto Lorato, both will form a new venture to run the plans.

This collaboration between MedcoPower and Kansai Electric will unlock our potential to grow in the power sector in Indonesia in line with the company strategy to become a leading Energy sector player, he said in a press statement on Monday (09/07).

Established in 2004, MedcoPower is one of the leading Independent Power Producers in Indonesia for gas and renewable power. The unitholds a gross capacity over 3.3 gigawatt (GW) in combined independent power producer and O&M business in 18 locations across the country.

While, Kansai Electric is one of Japanese power companies, with business lines spanning from fuel procurement, power generation, sales and services. The company has presence in 13 countries across Asia, Europe and United States with a total generation capacity of 33.5 GW out of which, 2.8 GW are outside of Japan.