Apexindo told to delist from the stock market

Ika Krismantari, The Jakarta Post, Jakarta | Thu, 01/29/2009 1:49 PM  

Publicly listed oil and gas services provider PT Apexindo Pratama Duta may soon disappear from the signboards in the Indonesia stock exchange (IDX) as the stock market authority sees the recent acquisition of the company by another publicly listed company, PT Mitra Rajasa, as being involved in a chain listing. 

A chain listing happens when the acquired company makes a revenue contribution of more than 50 percent to the purchasing company, so the acquired company has to be delisted from the bourse. 

In the Apexindo case, it has contributed 88 percent of Mitra's revenue after the acquisition, leaving Mitra with no option but to delist Apexindo, IDX president director Erry Firmansyah said Wednesday. 

"The company's management has come to us and requested suspension to be able to carry out the delisting plan," he said. "We will execute the plan as soon as possible." 

Mitra, which was once focused on the transportation business, acquired 98.14 percent of Apexindo for US$ 500 million in November last year, making it the largest integrated oil and gas services company. 

The acquisition of Apexindo has contributed significantly to Mitra's net profits which rose by a multiple of 35 times from Rp 1.6 billion (US$142,400) in January-September 2007 to Rp 58.4 billion in the same period last year. 

Apexindo announced earlier that it expects to book $55 million in net profits this year, up on the estimated $30-$40 million last year. 

Apexindo currently operates eight on-shore rigs, six off-shore rigs and an FPSO (floating production storage and offloading facility). (hwa)