Get the green light for the acquisition of Ophir, Medco shares up 3.43%

CORPORATE ACTION - JAKARTA. The share price of PT Medco Energi Internasional Tbk (MEDC, member of Kompas100 index) rose 3.43% to Rp 905 per share on Thursday (21/3). Medco's share price rose after the oil and gas company obtained an agreement to acquire Ophir Energy Plc.

Ophir Energy, a company listed on the London stock exchange agreed to be acquired by Medco for 408.4 million pounds, equivalent to US$ 539 million. Ophir shareholders will receive 57.5 pence per share in cash.

Binaartha Sekuritas analyst Nafan Aji said Medco's acquisition of mining companies was not the first time. In 2016, Medco also acquired PT Newmont Nusa Tenggara worth Rp 33.8 trillion.

"The acquisition was positive for Medco to improve fundamental performance," Nafan said to Kontan.co.id, Thursday (21/3).

Technically, Nafan still recommends accumulating purchase of MEDC shares with a target price of IDR 1,125 per share.