Indonesia’s state oil company Pertamina is no longer interested in buying Coastal Energy company, The Jakarta Post has reported.
The company was willing to pay to pay a 15% premium to Coastal’s share price, according to the Financial Post. The bid valued Coastal at $2.6-billion, but Coastal shareholders refused the offer as too small.
Karen Agustiawan, the president and CEO of Pertamina, explained the reasons for withdrawal of the takeover offer: “Although the assets are good, the purchase price is too high and do not match the value of the assets.”
Coastal is an international oil and gas exploration and production company with assets in Thailand and Malaysia.
The company on November 6, 2012 confirmed it was in negotiations with Pertamina, but also said there can be no assurance that any transaction would occur.
Offshore Energy Today Staff,November 21, 2012