Medco poised to win takeover bid for Novus

Medco poised to win takeover bid for Novus

Jakarta listed oil company PT Medco Energi Internasional may succeed in its A$350.2 million (US$242 million) takeover bid for Australia's Novus Petroleum Ltd. after a group led by the Novus managing director Bob Williams decided not to increase its rival offer.

Williams' Sunov Petroleum Pty., which was bidding with Hong Kong-based Crosby Capital Partners, will not increase or extend its A$341 million bid for the Australian explorer, its said in an e-mailed statement.

Medco last month raised its offer to A$1.90 per share, topping Sunov's A$1.85 a share offer.

"It's highly unlikely that another bidder would emerge now and that shareholders would not just take the cash."

Jakarta-based Medco is looking to boost output in Indonesia, where Novus garners about 55 percent of its revenue. About 29 percent of Novus' oil and gas reserves are in Indonesia, with 27 percent in the U.S., 24 percent in Oman and 14 percent in Australia.

Novus also owns exploration assets in countries such as Pakistan and the United Arab Emirates.

Medco made two failed bids for oil fields in 2003 and has said its oil output may fall as much as 17 percent this year to 58,000 barrels a day unless it can buy new assets.

The Indonesian company arranged a US$120 million loan with United Overseas Bank Ltd., Singapore's second-largest bank, to help fund its increased takeover bid. Medco this week said it may sell Rp 1.8 trillion ($190 million) of bonds to repay the bank loan and refinance Novus' debt. -- Bloomberg