Indonesia: Pertamina may sell shares in geothermal subsidiaries
Alexander Richter
23 Nov 2009
Pertamina may sell shares in drilling unit PT Pertamina Drilling Services, geothermal unit PT Pertamina Geothermal Energy and energy exploration unit PT Pertamina Hulu Energi ahead of its own planned IPO.
According to local news, “State-owned energy company PT Pertamina may list some units on the Indonesia Stock Exchange next year ahead of its own planned public offering, a senior executive said.
Pertamina may sell shares in insurance unit PT Tugu Pratama Indonesia, drilling unit PT Pertamina Drilling Services, geothermal unit PT Pertamina Geothermal Energy and energy exploration unit PT Pertamina Hulu Energi, chief financial officer Ferederick Siahaan said in an interview on Friday.
The company plans to start following stock market guidelines next year, including rules on financial reporting, and become a publicly traded entity by 2012, Pertamina president director Karen Agustiawan said last month.
Ferederick said the company would try to list subsidiaries first to increase transparency, adding that Pertamina would retain majority stakes.
Last month, Karen said Pertamina planned to conduct initial public offerings for two of the subsidiaries, Pertamina Drilling Services and Pertamina Hulu Energi, in 2013, along with gas explorer PT Pertagas.
“A listing of units such as the geothermal and drilling services will be welcomed by investors as people are looking to invest directly in energy infrastructure and services,” said Alif Sasetyo, an analyst at PT Mandiri Sekuritas said. “We don’t have big drilling companies listed after PT Apexindo Pratama Duta was acquired” last year by PT Mitra Rajasa, a trucking-services provider.”
Source: The Jakarta Globe
