Jakarta, (ANTARA News) - State gas firm PT Perusahaan Gas Negara (PGN) is seeking external funding sources to acquire two-thirds of the shares of PT Pertamina Gas (Pertagas), a subsidiary of state oil and gas company Pertamina.

PGN will need Rp16.6 trillion, equal to 51 percent of Pertagas` shares, to finance the acquisition through internal and external funding sources, Said Riza Pahlevy, the finance director of PGN, stated at a press conference here on Tuesday.

"We still have the capacity to finance this transaction. However, it will not entirely be financed by internal funding. Only one-third of the funds will be taken from internal sources and the remaining two-thirds from external sources by considering the minimum effect for PGN," he noted.

He revealed that PGN is contemplating on the most likely step to settle the acquisition in 90 days as required.

The company`s financial health is so good that it could find external funding from banks and money market, he emphasized.

"The problem is that we only have 90 days. Hence, the most possible (funding source) is bank loans," he pointed out.

PGN and Pertamina had signed a conditional sales purchase agreement (CSPA) on Friday (June 29) for the sale of a 51-percent stake in Pertagas.

The signing of the agreement is part of PGN`s efforts to acquire Pertagas after a state-owned oil and gas holding company was set up in Apr 11 this year, Rachmat Hutama, PGN corporate secretary, noted in a press statement released late last June.

The state-owned oil and gas holding company was endorsed through the signing of an agreement to transfer the state`s stake in PGN to Pertamina via a capital participation scheme.

Under the CSPA, PGN will hold 51 percent of Pertagas` shares, making it the majority shareholder, he explained.


Reporter: Ade Irma Junida
Editor: Suharto
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