Pertamina To Acquire Rekind

Jakarta (Antara Bali) - State oil and gas company Pertamina plans to acquire a 95.03 percent stake in state engineering and construction firm PT Rekayasa Industri (Rekind), from Pupuk Indonesia Holding Company and PT Pupuk Kaltim, according to an official.

"Only 4.97 percent of Rekind shares owned by the state will remain in the company," the State Enterprises Ministry's deputy minister for strategic and manufacturing industries, Dwijanti Tjahjaningsih, said here on Thursday.

"In order to execute the acquisition plan, Pupuk Indonesia Holding Company, as the majority shareholder of PT Rekind, will hold a due diligence meeting to seek the approval of other shareholders," he added.

The acquisition plan was announced after State Enterprises Minister Dahlan Iskan asked Pertamina to acquire Rekind. The acquisition will provide Pertamina with construction and engineering expertise in order to build new refineries and other energy infrastructures.

Earlier, Dahlan said he expected the acquisition to be completed before the end of this year. (*/DWA/T007)