Australia approves Medco's takeover bid

The Jakarta Post, Jakarta

Publicly listed oil and gas company PT Medco Energi Internasional said on Friday the Australian government had approved its A$326 million takeover bid for Australian energy company Novus Petroleum Ltd.

In a statement to the Australian Stock Exchange, Medco said the Australian government had no objection to the takeover plan, based on the Commonwealth Government's foreign investment policy.

"The Treasurer of the Commonwealth of Australia has advised that there are no objections, in terms of the Commonwealth Government's foreign investment policy, to the acquisition of Novus shares by Medco at anytime until Feb. 5, 2005," Medco said.

The acquisition of Novus will boost Medco's average oil and gas production by 21 percent, and pave the way for Medco's attempt to switch itself to a gas producer from an oil producer, a move necessitated by the continued decline in its oil reserves.

Medco has extended the deadline for the takeover to Feb. 24 from Feb. 10 after an independent valuer, Grant Samuel & Associates, valued Novus shares at between A$1.96 and $2.75, higher than the $1.74 per share offered by Medco.

The extension of the deadline is aimed at giving Novus shareholders more time to decide on the offer. Medco's rival in the takeover, a consortium consisting of Novus chief executive Bob William and Hong Kong-based Crosby Capital Partners, has bid $1.77 per share.

Medco shares ended higher on Friday by Rp 50 at Rp 1,500 following news of the approval from the Australian government.