Thailand's PTT Exploration and Production Public Co. Ltd. (PTTEP; local currency BBB+/Stable/--; foreign currency BBB-/Stable/--) has announced its planned US$225 million cash acquisition of a 40% stake in New Links Energy Resources Ltd. This transaction will not affect Standard&Poor's ratings on PTTEP. New Links controls 85.4% of P.T. Medco Energi Internasional Tbk., which is primarily involved in oil and gas exploration and production activities in Indonesia. As PTTEP and the other shareholders of New Links are required to make a tender offer to minority shareholders of publicly listed Medco, PTTEP's total acquisition amount could potentially increase to US$251.5 million. The acquisition is within Standard&Poor's expectations. It is also in line with PTTEP's strategy to enhance its
