Who is the winner for BP West Java asset?

A consortium lead by PT Energi Mega Persada Tbk, an oil and gas company controlled by Bakrie family, and PT Supreme Energy, is one of shortlisted bidders who want to buy Offshore North West Java (ONWJ), a blok owned by Britist Petroleum (BP) West Java.

Energi and Supreme will be a contender of a consortium lead by PT Indika Energy Tbk, a coal-fired producer owned by a conglomerate Sudwikatmono, and oil and gas state owned enterprise PT Pertamina.

A new President Director of Energi Mega Imam P. Agustino said the company is doing a due diligence at ONWJ. The company has planned to set up US$300 million of capital expenditure this year, higher than the previous year of Rp1.3 trillion.

Indika is ready to use its internally-generated cash flow to fund its acquisition of oil and gas assets.

BP West Java is a unit firm of oil and gas giant company British Petroleum (BP) with its 46% of ownership in ONWJ. BP announced its plan to divest ONWJ on February 25 2009.

BP is a operator as well at ONWJ with its partners of CNOOC (36.72% of ownership), Inpex (7.25%), and itochu Oil Exploration (2.5%). Oil production of ONWJ is around 24.000-25.000 barel per day.

A source familiar to the trasaction said Indika is not a new comer for BP. Indika has now a good relationship with BP. Via its engineering subsidiary PT Tripatra Engineering, Indika has a an oil and gas project with BP. "Indika needs to approach more intensive to win ONWJ. If the company win the tender, Indika's shares price skyrocketing is inevitable," he said.

Energi Mega sets up a partnership with Supreme Energy, a company owned by Supramu Santosa.

Compared to Energi Mega dan Supreme Energy, Indika is more cash rich than both firms. With its cash inundation of Rp3.43 trillion, it is not difficult for Indika to finance its acquisition. In fact, Energi Mega has a cash of Rp219.53 billion at the end of first quarter 2009.

"I am worried Energi and Supreme have difficulty to get loan to support its acquisition program," he said.

Indofood & Medco jack-up IDR bond

The biggest noodle producer in Indonesia PT Indofood Sukses Makmur Tbk and an oil and gas firm PT Medco Energi Internasional have eventually decided to jack-up their rupiah bond as a bigger demand from investor.

Indofood, controlled by Salim family, will lift-up its bond to around Rp1.5 trillion, Rp500 billion higher than its initial plan of Rp1 trillion. An oil and gas company controlled by Panigoro family will elevate its rupiah bond to around Rp1.5 trillion.

"Demand for Indofood's bond is now around Rp1.25 trillion, while investor book Rp1.1 trillion for idr notes issued by Medco," said a source familiar with the matter.

A five-year matured debt of Indofood provides a 13% of annual interest, while three-year and five-year notes of Indofood brings interest rate of 13.375% and 14.25% to investor.
Lead underwriter of Indofood's bond are PT DBS Vickers Securities Indonesia, PT Danareksa Sekuritas, PT ING Securities Indonesia, PT Kim Eng Securities, and PT OSK Nusadana Securities Indonesia.
Indofood will use a cash from bond IV/2009 to refinance its previous debt of Rp976 billion due in July this year. The company's notes has awarded rating of idAA from a local rating agency PT Pemeringkat Efek Indonesia (Pefindo).
Medco is going to utilize its notes to finance its investment and the remaining is for working capital. Pefindo has given rating of AA- for Medco's idr debt. Oil and gas company is helped by joint lead underwriters of PT Bahana Securities, Danareksa Sekuritas, PT Kresna Graha Sekurindo, and PT Andalan Artha Advisindo Sekuritas.

Bobby Gafur to lead Bakrie & Brothers? (again)

An investment holding firm controlled by Bakrie family, PT Bakrie & Brothers Tbk, is planning to change its board of directors (BoD).

An executive declined to be named said Nirwan Bakrie has appointed Bobby Gafur Umar and another former Merrill Lynch investment banker to enroll BoD.

"I hear Bobby and former Merrill's banker have been appointed by Nirwan Bakrie to enter BoD. Do they will replace Nalinkant A. Rathod and Dileep Srivastava?" he said.

So far, Nalin and another Bakrie & Brother's Director Ari Saptari Hudaya are too busy with their job, making PT Bumi Resources Tbk's operation and share performance better.

The source said it is better for Nalin and Ari have a focus on Bumi, the biggest devidend contributor for Bakrie & Brothers. Let Bobby Gafur and another executive handle Bakrie's operation and its shares performance. If it is so, it means Nalin and Ari Hudaya should resign from Bakrie & Brothers.

Based on an announcement submitted by Bakrie & Brothers to the Indonesia Stock Exchange, the company will hold an extraordinary general meeting on June 30 2009 with an agenda of management's reshuffle.