Energi Mega Persada secures approval for Rp 3.78t share sale

Energi Mega Persada secures approval for Rp 3.78t share sale

Grace Nirang, Bloomberg/Jakarta

PT Energi Mega Persada (EMP), Indonesia's second biggest
publicly-traded oil and gas producer, said its shareholders
approved a plan to raise as much as Rp 3.78 trillion (US$387
million) by selling new shares to fund expansion.

EMP plans to raise Rp 3.78 trillion by selling shares to buy
PT Tunas Harapan Jaya and develop its oil and gas fields,
President Director Christopher Newton said in a phone interview
on Thursday. EMP will buy Tunas Harapan for about $300 million,
he said.

"We expect to complete the sale sometimes in January," Newton
said.

EMP plans to sell 4.9 billion new shares, offering 15 new
shares for every 29 stocks held by shareholders, it said in an
Oct. 27 filing to the stock exchange.

EMP plans to spend $275 million developing fields in East Java
province to raise their gas output almost fourfold in three
years, the company said on Nov. 22.

EMP's shares were unchanged at Rp 740 at 4 p.m. local time
close at the Jakarta Stock Exchange.