Indonesian Government Gives Nod for Pertamina to Acquire PGN
The Indonesian government has accepted a proposal by state-owned oil and gas firm PT Pertamina to acquire the country's natural gas distribution and transportation company PT Perusahaan Gas Negara (PGN), Antara news agency reported Sunday.
The acceptance was reported in the minutes of a Jan. 7 meeting between State-owned Enterprise Minister Dahlan Iskan and the Board of Directors and Commissioners of Pertamina, including Pertamina President Director Karen Agustiawan.
The proposed acquisition of PGN would take around eight months, including 3.5 months for its execution, according to Mahmuddin Yasin, a member of Pertamina's board of commissioners.
Pertamina plans to merge PT Pertagas - its gas trading unit - with PGN and the resulting entity will become a subsidiary of the state-owned oil and gas firm. Pertamina aims to own 30-38 percent shares of the merged entity, with the Indonesian government and the public expected to hold 36-40 percent and 26-30 percent of the shares, respectively, Anatara reported.
Pertamina could become the majority shareholder in the merged company if the government authorizes the state-owned petroleum firm to hold its shares as this would raise its stake to 70-74 percent, according to the Indonesian news agency.
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