Bumi pledges KPC & Arutmin

Management of the biggest coal miner in Indonesia PT Bumi Resources Tbk is hungry for new loan.

After selling 30% stakes respectively of darling coal subsidiaries, PT Kalimantan Prima Coal (KPC) and PT Arutmin Indonesia to Indian company Tata Power, Bumi nowadays has mortgaged stakes at KPC, Arutmin, IndoCoal Resources (Cayman) Ltd, PT IndoCoal Kalsel Resources, dan PT IndoCoal Resources Kaltim in order to seal debt like instruments from China Investment Corporation (CIC)

Bumi has mortgaged an original subsidiary guarantor, as well as deed of pledge of account receivables and assignment of rights to proceeds, among others.

In the first half this year, Bumi posted 16.53% dip in net profit to US$251.90 million from the same period last year of US$301.79 million. Revenue slightly rose by 2.68% in the first months this year to US$1.53 billion from US$1.49 billion.

Operating profit incrased by 19.53% to US$505.59 million in the first half this year from a year before of US$422.98 million. A lower net profit was due to an increase of financial burdn to US$48.78 million from US$13.90 million.

BW sets IPO price Rp525-Rp750

PT BW Plantation Tbk has set an initial public offering price in the range of Rp575-Rp750 per share. It reflects 5,5-7,9 x estimated P/E 2010.The company is scheduled to arrange a due diligence meeting and public expose today.
In the IPO, BW is helped by two lead underwriters PT BNP Paribas Indonesia and PT Danareksa Sekuritas.

Adaro to seal US$500 million loan

PT Adaro Energy Tbk is nigh to sign loan agreement of US$500 million. The coal producer will secure loans next month.

As reported by infrasia.com Friday last week, Adaro is securing loans from 12 financial institutions both local and foreign. The creditors are Bank Mandiri, ANZ Bank, Bank of Tokyo Mitsubishi UFJ, BNP Paribas, Chinatrust Commersial Bank, and DBS. The rest are HSBC, ING, OCBC, Sumitomo Mitsui Banking Corporation, Standard Chartered Bank, and UOB. Adaro wraps up 5 year loans providing annual interest rate of 3.75% above Libor with

Northstar appoints Hagianto to lead DOID

Northstar Pacific Partner Limited, a private equity fund founded by Patrick Walujo, has designated Hagianto Kumala, commissioner of PT United Tractors Tbk, to tackle the first position of PT Delta Dunia Property Tbk (DOID).

Kumala will be appointed as an upcoming DOID's president director along with strong candidate for president commissioner Erry Firmansyah, former the first person of Bursa Efek Indonesia. "Kumala is the right person to lead DOID which will be the second biggest coal mining contractor after PT Pamapersada Nusantara," a source familiar to the matter said.

Pama is the largest coal mining contractor, 100% owned by United Tractors (UT), a distributor of heavy equipment Komatsu under PT Astra International Tbk Group. "Kumala is eager to join DOID because of former Astra's President Director T.P. Rachmat," a source said.
Kumala is one of Astra Group's executives with rich experiences to handle mining contractor. He played major role to heal wounded UT from debt backlog in 1998-1999. For him, the most success story was when he accomplished the sale of defaulter fifth biggest coal miner PT Berau Coal.
Kumala has been appointed by UT's share holders to join BoC since May 2007 after serving as president director of the company since 1999. He has joined Astra since 1971 and handled various strategic positions ever since. Director of Astra was his job in 1991-2001 before enrolling UT as director in 1979-1988. Then, he was appointed as vice president director of UT in 1988-1994. In 2001-2004, Kumala held president commissioer of Berau Coal afrer serving as commissioner in 1998-2001.

Astra Group executive to lead DOID?

An executive of PT Astra International Tbk Group is set to lead PT Delta Dunia Property Tbk (DOID), an upcoming second biggest coal mining contractor after closing a leveraged buyout PT Bukit Makmur Mandiri Utama (BUMA).
A market talk said last week that along with the Astra Group executive's enrollment, former President Director PT Bursa Efek Indonesia Erry Firmansyah will be designated by Northstar Pacific Partners to involve in DOID's board of commissioners.

"Is it an asnwer for investor concern about who will run DOID and BUMA after Johan Lensa quits?" a stock trader said.

BW Plantation sets IPO price Rp825?

The next candidate for publicly listing company, PT BW Plantation Tbk, has planned to offload 1.21 billion shares consisting of 897 million new shares dan 314 million existing shares.

According to BW public announcement, BW's share holders, PT Cahaya Cipta Global and PT Surya Cipta Sejahtera, will offload 157 million shares respectively into the market during the IPO of 30%.

After IPO, controlling share holders of BW are PT BW Investindo of 38.89% and Fendalton Investments Pte Ltd of 23.33%, while PT Wahana Platinum Indonesia and PT Mitra Energi Global own 3.89% respectively.

Mitra Energi will hammer out over allotment of maximum 60.55 shares during the IPO. Two lead underwriters helping the transaction are PT Danareksa Sekuritas and PT BNP Paribas Securities Indonesia.

An executive familiar to the matter said with a target of Rp1 trillion, IPO price is in the level of Rp825-Rp1.000 per share. In the first half 2009, BW posted Rp312.37 billion, operating profit of Rp172.21 billion and Rp107,13 net profit

IRR 14% or 19%?

PT Bumi Resources Tbk, the biggest coal miner in Indonesia controlled by Bakrie family, announced US$1.9 billion debt-like instument deal with Chinese sovereign wealth fund, China Investment Corporation (CIC) yesterday. But, debt structure remains unclear.
According to Bumi’s press release, the company will pay back US$600 million in year 4, US$600 million in year 5, and the remaining in year 6 to CIC. The debt-like instrument bears a 12% annual cash coupon with a total internal rate of return (IRR) of 19%, the balance payable at the time of final maturities. The funds will be utilized for debt restructuring and capital expenditure.
Regarding to the deal, PT Mandiri Sekuritas has published a short analysis so-called Investor Digest. The report said three statements referring to debt-like instrument, IRR of 19%, and the balance at the time of final maturities.
Based on term of payments, Mandiri calculates that IRR of CIC’s investment of just 14%, not 19%. “We think that there are details not yet or not announced. To obtain IRR of 19%, Bumi has to make additional US$1 billion payment in year 6.” Ari Pitoyo, Head of Research of Mandiri Sekuritas, said in a report.
This is a typical Bumi announcement where gives one piece of a puzzle at a time, and keeps guessing on the next move. “Our guess, this is somewhat equity linked, with gain from equity appreciation by year 6 should amounted to US$1bn, or else BUMI has to makeup the balance.”
Based on existing information the deal is expensive and detrimental to shareholders. More clarifications are needed.
Mandiri Sekuritas sets Bumi price target of Rp4,000. At Rp3,350/share, BUMI is traded at 15.3x and 14.0x, PE09F and PE10F, respectively, with EV/EBITDA of 7.9x and 7.3x, for 09F and 10F.

Finally BUMI-CIC deal comes out

PT Bumi Resources Tbk (BUMI) announced that China Investment Corporation (CIC) has invested US$1.9 billion in Bumi in the form of a debt-like instrument.

The US$1.9 billion investment consists of US$600 million repayable in year 4, US$600 million in year 5, and remaining US$700 million in year 6. The investment attracts a 12% annual cash coupon with a total IRR of 19%, the balance payable at the time of final maturities. The funds will be used for debt restructuring and capital expenditure.
“We are honored by this historic and transformational investment by CIC, the leading sovereign fund in the world. The investment will enable Bumi to implement its growth strategies quickly and provide a stable capital structure. More importantly, the partnership creates the platform for CIC and Bumi to pursue investment opportunities jointly”, remarked Ari Hudaya, President Director and CEO of Bumi, one of the leading natural resources companies in Asia with world-class coal assets, in a press release today.
CIC, wholly-owned by the People’s Republic of China, is one of the largest and reputable investment institutions in the world. Bumi is Indonesia's largest producer and one of the world’s largest exporter of thermal coal with strong practices in community development, corporate social responsibility and corporate governance.
PT Samuel Sekuritas Indonesia acted as arranger and financial advisor, and Jones Day acted as legal advisor to Bumi. Deutsche Bank and China International Capital Corporation (CICC) acted as financial advisors and Davis Polk & Wardwell acted as legal advisor to CIC in this transaction.

Bumi seals US$1.9 billion cash from CIC

The biggest holding firm of two coal miners in Indonesia, PT Bumi Resources Tbk, had sealed US$1.9 billion (Rp19 trillion) cash from Chinese Investment Corporation (CIC), a sovereign wealth fund, before Ied Mubarak last week.
An executive familiar to the matter said by injecting deluge of cash to the biggest coal company under Bakrie Grup, CIC is in vanguard of some Bumi's operationals. "CIC has the first right on Bumi's operationals in the future. I can't explain in detail," an executive said yesterday.

CIC is interested to buy both bonds and warrants issued by Bumi totalling US$1.9 billion. The wealth fund and Bumi are scheduled to announce the deal completion today at 3.00 PM (Jakarta time). Bumi is helped by Samuel International, a local investment bank founded by Miming Satyono, while Deutsche Bank advises CIC.

Former banker Goldman Sachs, Arif Sidarto, is the only investment banker behind the deal. He, who had legal battle againts Komisi Pengawas Persaingan Usaha (KPPU) related to very large crude carrier (VLCC) and PT Pertamina in 2004, has joined Samuel International early this year. But, less than a year working for Samuel, Miming allows Arif in charge important positions. He is now managing partner and head of investment banking in Samuel International.

CIC-Noble deal

CIC bought 14.5% stakes in Noble Group for US$850 million as well, allowing Chinese Government investment arm more exposure to global commodities markets. Noble is the only major global commodity trading house, a fierce contender for Glencore. Noble said in a statement it had agreed to sell 573 million shares to CIC at S$2.1137 per share, an 8% discount to its last traded share price of S$2.30.

CIC is also weighing to put money into Mongolian iron-ore miner owned by Hong Kong's Lung Ming Investment Holdings as well. CIC will buy US$300 million convertible bonds of Lung Ming Investment. Lung Ming, which is to go public next year, steers 53% stakes in the operator of the Eruu Gol iron-ore project in Mongolia, as reported by Wall Street Journal.
The fund is in talks to acquire a stake in US power-plant developer AES. Chinese companies have stepped up overseas investment. According to data provider Dealogic, Chinese firms have invested US$16.7 billion to acquire stakes in steel companies and miners, up from $3.6 billion in 2007.

After Northstar, now Recapital

After one month failing to reach a closing target in mid last month, PT Tridaya Esta (TDE) yesterday came up with a weird new public announcement. The divestment price and new closing date remains vague.
According to the announcement, TDE disclosed to reach a following agreement of 37.1% shares divestment of PT Elnusa Tbk to Saratoga consortium. Saratoga, founded by Sandiaga S. Uno, has designated Recapital Assets Management as a deal executor. What does it mean?

So, where is Northstar? and at what price Saratoga buys Elnusa? No single executives at Bahana Securities, TDE, and Saratoga want to answer the questions.

Elnusa's divestment deal is in line with debt restructuring of TDE with its creditors. Who are the creditors? Is it Darmala Investments, Singapore-base company which holds Elnusa shares?

By appointing Recapital, is there any sign that Northstar has pulled out from the consortium? or Northstar is now more interested to buy PT Bukit Makmur Mandiri Utama (Buma)?

CIC-BUMI deal comes out

China Investment Corporation (CIC), the country's sovereign wealth fund, is considering some investments in overseas commodity producers, including the biggest coal miner in Indonesia under Bakrie Group, PT Bumi Resources Tbk.

As reported by China Daily on September 16, CIC is weighing to put money into Mongolian iron-ore miner owned by Hong Kong's Lung Ming Investment Holdings as well. CIC will buy US$300 million convertible bonds of Lung Ming Investment. Lung Ming, which is to go public next year, steers 53% stakes in the operator of the Eruu Gol iron-ore project in Mongolia, as reported by Wall Street Journal.

The fund is in talks to acquire a stake in US power-plant developer AES. According to my source familiar with the matter, CIC will bring US$1.9 billion or Rp19 trillion into Bumi Resources by buying bonds and some warrants. The agreement was signed on Tuesday night in Beijing, China.

Samuel International, run by Mrs Miming Satyono, is the only adviser for Bumi with major role to wrap up the deal, while Deutsche Bank is in vanguard to advise CIC.

Chinese companies have stepped up overseas investment. According to data provider Dealogic, Chinese firms have invested US$16.7 billion to acquire stakes in steel companies and miners, up from $3.6 billion in 2007.

Bukopin prepares rights issue & bond

PT Bank Bukopin Tbk is hammering out to issue rights of 20%-30% and bond targetted Rp500 billion-Rp1 trillion early next year.

Bukopin management allows PT Bank Rakyat Indonesia Tbk to hold acquisition possibility via rights issue. The bank's President Director Glen Glenardi said the company needs additional capital. Bukopin is looking some affordable options such as rights issue and debt issuance. "The options will be executed next year. Bank CAR stays at 13%, allowing us to provide 20% credit."

Bleak sale devastates ELSA shares

A gloomy sale of 37.67% of oil and gas servicing company PT Elnusa Tbk has stalled its shares to rise. A consortium of Saratoga Capital, led by Sandiaga S. Uno, and private equity Northstar Pacific Partners owned by Patrick Walujo has failed to meet its deadline target to close the transaction.

The consortium, advised by PT Bahana Securities, was declared as a preferred bidder of Elnusa on June 11. In a public statement, the winner, beating Ciptadana and PT Pertamina, strived to close the deal in 8-10 weeks after the announcement. Saratoga-Northstar are interested to buy Elnusa stakes from PT Tri Daya Esta.

Bahana Securities Director Eko Yuliantoro, as reported by Bisnis Indonesia today, said Saratoga-Northstar will continue to arrange talks with Tri Daya. "I hope the deal is closed after Lebaran."

But, he refused to explain a stumbling block of the deal negotiation. Eko is unable to comment about price revision as well.

CEO Saratoga Sandiaga Uno said the discussion is persisting. "When closing is reached, an announcement will be made."

Now, ELSA share remains stick at the level Rp350 per share. It is difficult for the stock to continue rally without getting catalyst from the deal.

Tjiwi Kimia acquires SULI unit

PT Pabrik Kertas Tjiwi Kimia Tbk buys 60% stakes of PT Sumalindo Hutani Jaya, a unit of publicly listed timber producer PT Sumalindo Lestari Jaya Tbk (SULI) as Samko Timber, Singapore-based listed firm, is unable to underpin financing.

Sinarmas Group Director Yan Partawijaya said for Tjiwi Kimia, subsidiary of Sinarmas Group, the transaction is immaterial, but it will controll Sumalindo Hutani. SULI shares now rises 9.62% to Rp570, following speculative rumor of possibility tender offer.

Behind CIC-Bumi deal

China Investment Corporation (CIC), sovereign wealth fund, is interested to snap up notes and warrants which will be unveiled by the biggest holding company of coal mining in Indonesia, PT Bumi Resources Tbk, totalling US$1.9 billion.

As reporterd by Bisnis Indonesia today, both executives of CIC and Bumi are scheduled to sign sale and purchase agreement late today in Beijing, China. "If the plan runs smoothly, SPA would be signed late afternoon today," a source familiar with the matter said.

CIC, an investment arm of China Government, last year made US$200 billion investment globally. CIC's investment on Bumi is less than 1% of its global investment last year.

"I hear about that [CIC's investment plan on Bumi]. Please ask in detail to Dileep Srivastava," Bumi Commissioner Nalinkant Amratlal Rathod said yesterday. According to the report, warrants will be converted at Rp4.000 per share.

Samuel International, a holding firm of PT Samuel Sekuritas which run by Miming Satyono, plays major role to warp up the deal along with European-based investment bank, hired by CIC.

Samuel International is not new comer for Bumi. Market knows that Mrs Satyono has good relations with Nalint and Bakrie. So, she helped Bumi to sell medium term notes last year to secure cheaper financing.

With 27 years experiences in Indonesia capital market, Mrs Satyono intiated her carrer with Citibank N.A. in 1981. She joined establishment of Samuel Sekuritas Indonesia in 1992.

If she could run smoothly CIC-Bumi deal, she would be stellar for Bumi individual share holders. Now, Bumi shares skyrockets by 6.45% to Rp3,300, propelling the entire Indonesia stock market which is running out of fresh 'blood'.

CIC in talks on mining investment

China Investment Corporation (CIC), the country's sovereign wealth fund, is in advanced discussions to invest around US$300 million in Mongolia-focused miner Hong Kong Lung Ming Investment Holdings Ltd.
According to peole familiar with the situation, the talks, as reported by Wall Street Journal, are the latest example of China's appetite for buying stakes in resource companies across the globe.

My sources said CIC, helped by a foreign investment bank, is in talks to invest on coal mining companies in Indonesia.

Moody's assigns Ba3 for BUMA rating

Moody's Investors Service has provided a provisional Ba3 corporate family rating to PT Bukit Makmur Mandiri Utama (BUMA).
At the same time, a provisional Ba3 senior secured bond rating was assigned to senior secured notes issued by Prime Dig Pte Ltd (Prime Dig), an entity wholly owned by, and whose bonds are also guaranteed by BUMA. The outlook is stable.
This is the first time that Moody's has assigned ratings to BUMA or Prime Dig. BUMA intends to raise up to US$600 million of debt financing and is considering various options including US dolar bond offering.
The proceeds from the bond issue will be used to refinance outstanding debt under an existing US$366 million bank facility at the BUMA level, as well as retiring existing indebtedness of PT Delta Dunia Property Tbk (DOID).
“BUMA's provisional Ba3 ratings reflect its well recognized franchise and established relationships with Indonesia's largest coal concession holders as well as the contractual nature of its revenue base with various in-built protections against cost increases," says Laura Acres, a Moody's Vice President.
Furthermore, BUMA benefits from its 19% market share and position as Indonesia's second largest mining services operator and inherent growth potential in the Indonesian coal mining industry which, given its market position and experience, BUMA is well placed to benefit from.In addition, Moody's would be concerned should the investor consortium led by Indonesian private equity firm (Northstar Pacific Partners Ltd) seek in the near-term to fully exit from its investment in Delta, (BUMA’s 100% owners), thereby indirectly exiting from its investment in Buma, given that this would potentially invoke the change of control clause with subsequent need to refinance debt. The rating agency would also be concerned if BUMA's underlying operating or financial strategy were to materially alter.

BTEL net profit rises 16.7%

A CDMA-based operator under Bakrie Group, PT Bakrie Telecom Tbk (BTEL) posted a 16.7% rise in net profit in the first semester this year compared to a year earlier.
The company, which is famed with Esia brand name, booked net profit of Rp72.8 billion in the first six months this year from a year earlier of Rp62.4 billion.
In a press release distributed today, Bakrie Telecom’s revenue in the first half 2009 skyrocketed by 41.9% to Rp1.33 trillion from a year before of Rp938 billion.
In line with higher revenue, the operator’s EBITDA jumped by 81.6% to Rp619.9 billion in the first half this year.
BTEL’s subscribers recorded 8.9 million at the end of June this year, a 63.8% soaring from a year earlier of 5.4 million of subscribers. In comparison, its subscribers lifted up by 10.9% in the second quarter this year.

Barito net profit soars 203%

PT Barito Pacific Tbk posted soaring net profit by 202.95% in the first half this year, underpinned by a steep fall of cost of goods sold.

By making a net profit of Rp383.7 billion, a resources and integrated petrochemical-based company controlled by Indonesian tycoon Prajogo Pangestu is to make a pile.

In comparision, Barito booked a net loss of Rp372.7 billion in the first half last year. Along with profit jump, the company's revenue downed by 23.80% to Rp6,5 trillion.

According to Agustino Sudjono, Senior VP Barito, petrochemical business, came from two subsidiaries PT Chandra Asri and PT Tri Polyta Indonesia Tbk, still proped up its first half financial report.

Tri Polyta contributed a net profit jump by 185% to Rp365 billion from a year earlier of Rp128 billion as rising sales volume.

DOID crossing to hail divestment

A company previously owned by Benny Tjokro PT Delta Dunia Property (DOID) Tbk transferred 6 billion shares in a crossing transaction yesterday worth Rp600 billion.

According to Indonesia Stock Exchange data, the transaction was done at Rp100 per share, far below closing market price of Rp2.025.

An executive familiar with the matter said the shares transfer is an early step before DOID's share holders offloading their shares into the market. "DOID share holders has decided to transfer all their shares into one oversead trustee to secure shares before holding private placement."

PT Sinarmas Sekuritas crossed the most DOID shares, while some local holders made the remaining. Major controlling share holders of DOID are PT Texta Indonesia of 56% and PT Sinarmas Sekuritas holds 13.25%.

DOID's share holders have designated four houses to arrange placement scheduled next month. They are CLSA Indonesia, Danareksa Sekuritas, Deutsche Securities, and Macquarie Securities.

DOID is in a acquisition move to buy the second biggest coal mining contractor PT Bukit Makmur Mandiri Utama (Buma) worth US$550 million.

Underpinning the plan, Buma is going to issue a loan and debt combination of around US$600 million, arranged by Barclays Capital, Deutsche Bank, and ING.

Indika teams up Kepco to bid Berau

An engineering and coal-based company PT Indika Energy Tbk has teamed up The Capital Companies Group and Korea Electric Power Corporation (Kepco) in a bid to snap up 90% stakes at the fifth biggest coal producer PT Berau Coal.

Indika consortium, which keens to grab more coal acquisitions, is scheduled to propose a binding price for Berau to day, a week later from the previous time table on September 3. Indika has given a trust to a foreign investment bank Citi to help arranging financing.

The Capital is Washington-based private equity fund previously managed by Chapman Taylor, while Kepco provides electricity business of transmission and distribution with back up of hydro, coal, and nuclear-generated power plants.

Concurrently, PT Quattro Inti Investama has joinned South Korea-based Daesang Group to submit Berau binding price today.

Quattro, helped by an advisor Barclays Capital, remains an SPV for Surabayan tycoon Kentjana Widjaja, or dubbed Widjaja Group. Under Daesang Group, it is Daesang Holding which has business in investment.

Salim Ivomas to jack up IDR bond

An integrated giant crude plantation company under PT Indofood Sukses Makmur Tbk Group, PT Salim Ivomas Prama, has jacked up its IDR bond from Rp1.25 trillion to Rp1.5 trillion, adding Rp250 billion sukuk ijarah bonds.

The size of Rp500 billion higher than Salim Ivomas initial plan revealed in First Pacific Company's first half financial report published in its website on last Friday. First Pacific is a holding company of Indofood controlled by Indonesian tycoon Salim family

According to the report, Salin Ivomas notes issuance will be used to refinance short term loan of Indofood Agri Resources Limited (IndoAgri).

Interest bearing loan of IndoAgri in the first half 2009 stood at Rp2.59 trillion, while long term debt was around Rp4.17 trillion. A local rating agency, PT Pemeringkat Efek Indonesia, awards AA- rating to Salim Ivomas IDR bonds.

Aqua provides tender offer benchmark

After failing to go private in 2001 and 2005, PT Aqua Golden Mississippi Tbk remains stick with an unflagging plan of delisting.

In a public announcement released by Aqua today, a single controlling share holder of bottled water Aqua, PT Tirta Investama, has provided a tender offer benchmark of Rp450,000 per share.

The benchmark level is 83.82% higher than the highest closing level of Aqua during 90 days in the market before go private announcement published on September 8.

Tirta Investama, which controlls 94.35% of Aqua, is proposing a tender offer to buy the remaining 5.65% of shares in the market.

The tender price is 83.06% premium to Aqua highest level in the regular market in the last two consecutive years. It remains 124.89% above the fair value of Aqua gauged by independent valuer of Rp200,095 per share.

CIMB & Mandiri to seize BTN deal

Malaysia-based stock brokerage CIMB Securities and local investment bank PT Mandiri Sekuritas have eventually beaten fiercest contenders in IPO deal of state-owned bank PT Bank Tabungan Negara (BTN).

A consortium of CIMN and Mandiri has battered local houses PT Danareksa Sekuritas and PT Bahana Securities.

A source familiar with the matter said CIMB and Mandiri will help BTN to enroll stock market by offering 30% of shares to public.

BTN Presiden Director Iqbal Latanro confirmed the appointment of two underwriters CIMB and Mandiri for IPO deal. "BTN has designated CIMB and Mandiri based on some factors such as experiences and pricing."

The bank has targetted Rp2 trillion of cash from the IPO. State-Owned Minister Sofyan Djalil allowed two state enterprises BTN and building contractor PT Pembangunan Perumahan to list their shares in the stock market.

Aqua tender price above Rp400.000?

For bottled water producer PT Aqua Golden Mississippi Tbk, going private remains persisting strategy.

After failing twice to delist shares from Indonesia Stock Market in 2001 and 2005, Aqua is now coming back with a similar option of going private for its public share holders.

An executive familiar with the matter said the company failed its tender offer documents to the Capital Market Supervisory on last Friday.

When Aqua was eiger to delist in 2001 and 2005, the company offered tender price of Rp100.000 per share, premium from the market price of Rp59.000.

According to the documents, Aqua is ready to offer tender price two fold from the benchmark in 2005.

PT Bahana Securities is local house which helps Aqua go private. Director Bahana Andi Sidharta declined to comment.

Bakrieland to issue bond

Property company PT Bakrieland Development Tbk has planned to issue another bond of more than Rp1 trillion in 2010.

The notes issuance is one of financing options to get fresh money to support infrastructure projects. By holding roadshow, the company is rolling out the other financing options to lure strategic investor.

In line with the bond issuance, President Director Bakrieland Hiramsyah S. Thaib said the company will sell 30% of stakes in PT Bakrie Toll Road. "The divestment add a minimum equity of Rp1 trillion to the company," he said.

Two foreign investors All Pensions Group and fund management Fidelity have shown their interest to Bakrieland. They bought 2% of the company shares via the market.

First Pacific posts slight profit increase

First Pacific Company Limited posted a slight recurring profit increase by 1% in the first half 2009 to US$127.5 million from a year before of US$126.5 million.
In a public statement at its website, First Pacific, holding company controlled by Indonesian tycoon Salim family, said recurring profit was saddled by a lower contribution of PT Indofood Sukses Makmur Tbk. But, it is offset by a significantly improved performance of Metro pacific Investments Corporation (MPIC).

Indofood net profit drop was in line with the decline in crude palm oil prices and the depreciation of average rupiah against US dolar as well.
First Pacific is a Hong Kong-based investment firm with operations in Asia. Its principal business interests are related to telecommunications, infrastructure, consumer foods, and natural resources.
Four major subsidiaries under First Pacific are Phillipine Long Distance Telephone Company (PLDT), Indofood, Metro Pacific Investments Corporation (MPIC), and Philex Mining Corporation.
In PLDT and Indofood, First Pacific curbs respective shares of 26.5% and 50.1%. First Pacific steers 90.3% shares in MPIC and 21.1% in Philex.
First Pacific reported profit was 5% increase from US$156.8 million to US$164.3 million in the first semester 2009.
Amid a slight increase profit, First Pacific turnover shrank by 12% from US$2,044.8 million to US$1,809.1 million in the first half 2009. It reflected respective 12% and 16% depreciation of average peso and rupiah againts US dolar.
The biggest contributor for the turnover was Indofood of US$1,652.9 millionm while MPIC posted US$156.2 million turnover.In term of profit, PLDT was a main driver by posting of US$102.9 million, Indofood contribued US$31.8 million, MPIC and Philex made respective 14.6% and 2.1% profits.

IBT & Shell to build fuel facilities

PT Indonesia Bulk Terminal (IBT) has signed a fuel facilities agreement with PT Shell Indonesia to underpin traffic growth at IBT’s port and jack up revenue from liquid bulk jetty operations. Total cost of the project is estimated US$40 million.
In a public statement today, IBT, PT Adaro Energy Tbk unit, signed an agreement with Shell Indonesia on September 1, 2009.
Adaro President Director Garibaldi Thohir said the cooperation is part of company commitment to bolster coal supply chain efficiency and further develop performance.
IBT, 100% owned by Adaro Energy, is the operator of the common user Pulau Laut Coal Terminal on Southern tip of Pulau Laut island. IBT port has a rated throughput of 12 million tonnes annually and is able to load vessels of up to 80,000 DWT.
Shell will build a fuel storage terminal with a minimum capacity of 60,000 tonnes within the terminal facilities of over the land owned by IBT in Pulau Laut, South Kalimantan.
IBT will construct other shared facilities within IBT’s terminal, which is utilized by Shell to load and unload oil products from fuel storage facility to the vessel or barges.
Shell owns, maintains, and operates the fuel facility which would be transferred to IBT in 2022, or earlier if agreed to by both parties.

After the transfer Shell shall still be able to use the facility for the storage and handling of fuel. Shell shall finance, design, construct, own, operate and maintain the facility and while IBT will do the same for the shared facilities.

Who are BUMA clients?

PT Bukit Makmur Mandiri Utama (BUMA) is the second largest mining contractor in Indonesia with around 19% market share in 2008.
BUMA’s franchise is well recognized within the Indonesian mining community, employing more than 8,000 employees and owning a fleet of around 2,500 units of heavy equipments.

Up to 99% of the contractor is acquired by publicly listed firm, PT Delta Dunia Property Tbk (DOID). If the transaction were running well, DOID will transform itself from shell company into the second largest coal contractor in Indonesia. That is a positive impact of backdoor listing. But, who are actually BUMA clients? Are they big names? Here is the list of them:

1. Adaro, 250 million bcm, 2009-2013.


2. Kideco, 600 million bcm, up to 2020.


3. Berau Coal-Lati, 973.75 million bcm,1998-2018.


4. Berau Coal-Suaran Port, 2003-2018.


5. Berau-Binungan, 394.14 million bcm, 2003-2018.


6. Marunda Graha Mineral, 45 million bcm, 2003-2012


7. Lanna Harita Indonesia, 31.5 million bcm, 2007-2009.


8. IMK, equipment hire, 2005-2009.


9. Bukit Baiduri Energy, 16 million bcm, 2001-2009.


10. Bayan-Perkasa Inaka Kerta, 61.4 million bcm, 2007-2012.


11. Bayan-Gunung Bayan, 235 million bcm, 2007-2013.


12. Arutmin, 32.5 million bcm, 2008-2011.
    

Mobile-8 to offer debt swap for bond holders

PT Mobile-8 Telecom Tbk, wounded CDMA-based operator unit of PT Global Mediacom Tbk, has silently offered a previous scheme of debt to equity conversion to some rupiah bond holders.
The operator has initially provided the conversion scheme for vendors with rights issue worth Rp500 billion.
If the struggling operator wanted to cover all rupiah bond holders, rights issue target would be higher than Rp500 billion. The company so far estimates that the rights issue will be jacked up to Rp2 trillion. “Mobile-8 has set up target of the final conversion in Oktober,” a source familiar with the matter said yesterday.
The company first half result posted Rp188.72 billion revenue, less than half a year before of Rp456.95 billion. A steep decrease in revenue worsened net loss from Rp99.80 billion to Rp269.55 billion in the first half this year.

Indofood to spin off noodle unit

The second biggest instant noodle in the world, PT Indofood Sukses Makmur Tbk, will spin off instant noodle and ingredient division into an independent subsidiary, following its predecessors.
Before spinning off both units, subsidiary of Salim Group holding firm First Pacific Company Limited divested dairy products, nutrition, and specialty food divisions into separated entities.
First Pacific, which curbs 50.1% of Indofood, revealed a proposed internal restructuring in a public announcement yesterday to Hong Kong Stock Exchange.

Noodle and ingredient units will be under a new name firm dubbed PT Indofood Consumer Branded Products Sukses Makmur (Indofood CBP), formally established on September 2.
Indofood CBP is expected to run noodle business more efficient, free to develop market, and has a greater and vast financing access.
Under the restructuring, Indofood, a holding of Singapore-based CPO producer Indofood Agri Resources Ltd as well, will pile up assets and employees of both divisions and transfer them under Indofood CBP.
In return, the new company is scheduled to unveil new shares equivalent to net asset value, allowing Indofood steers 100%.
Market talks said following the spin off, Indofood CBP is open to grab fresh money from the capital market, unlocking value of the company and its holding.
Indofood posted Rp5.78 trillion sales from noodle business, while ingredient division made merely sales of Rp252 billion.
In 2007, Indofood was in vanguard of Indonesian noodle business with 71.50% of market share, while its fiercest contender Wings Group had 14% of market share, Jakarana Tama and other producers held consecutive market share of 2.20% and 12.30%.

New Age braces Bumi on Herald onslaught

Amid the onset of Herald Resources Limited independent directors suggesting investor not to respond offering price of PT Bumi Resources Tbk, New Age World Limited keens to grasp the offer.
In a public statement to Australia Stock Exchange yesterday, New Age said the company would grab the offer if there was no higher price offer from another buyers.

On August 21, Bumi came back for Herald to buy the remaining shares of 15.8% at AUS$0.7 per share. Bumi nowadays curbs 84.2% of Australia-based metal mining company. If New Age allowed Bumi to buy 8,2% or 16.53 million shares of Herald, a subsidiary of Bakrie Group just needed to enchant 7.65% of share holders, making it the only 100% controlling owner.

To steer Herald, Bumi has used its special purpose arm dubbed Calipso Investment Pte Ltd.

Bumi subsidiary seized a Herald majority shares after rending the offering price submitted by its fiercest contender, a state-owned nickel producer PT Aneka Tambang Tbk (Antam), in lingering battle in 2008.
During the competition, Antam with its subsidiary Tango Mining and Zhingjin Lingnan Nonfernet, China, in tandem vigorously biguiled Calipso. Antam suddently ceased its path from the battle when deadline was nigh.

Thanks to Antam new management. Soon after Antam scrapping its deal, financial global crisis devastated all metals price, making Calipso investmet so expensive. The company needs more cash to monetize Herald fields in Dairi, Sumatra as well.

Panin bonds offer 10.6%-11.6% coupon

PT Bank Pan Indonesia Tbk (Bank Panin) has offered fixed rate coupon of 10.6%-11.6% for its rupiah bond, 100-200 bps above Indonesia government bond FR0051.

The bank, scheduled to raise Rp1.5 trillion bond in the debt market, will use the proceed to underpin expansion in the mid and long term. The debt, matured in the next five years, will be offered to investor on September 30-October 1.

Credit Suisse drags down Bumi

A foreign brokerage Credit Suisse Securities in vanguard flinched shares of the biggest coal company in Indonesia, PT Bumi Resources Tbk, sending the shares experienced a 12% drop in a week.

From August 26 to September 2, the brokerage, the most darling debt arranger for Bakrie Group, recorded the biggest transaction on Bumi worth Rp1.11 trillion with volume of 390.55 million shares.

Of the transactions, Credit Suisse sold 317.22 million of Bumi shares, gaining of Rp902.27 billion, while the remaining was made in crossing worth Rp157.09 billion for 54.51 million shares.

A deluge sell-off from the brokerage pushed down 12.10% of Bumi shares from Rp3.100 to yesteday closing level of Rp2.725.

A market talk yesterday said massive profit taking on Bumi shares was made by the same group of people, raising questions whether lout people keen to drag down the price, weighing investor with hazy prospects, before rolling out spreading positive in the market.

If it happens, the next questions is what kind of stories coming from Bumi, enabling the shares stay high? Is there any Chinese investor to snap up Bumi shares? or another story of gaining more shares in Newmont or unit coal mining of BHP?

BW Plantation, is it cheap or expensive?

Equity value of CPO producer PT BW Plantation, a firm seeking a license to enroll stock market in the last quarter this year, is estimated around Rp2 trillion-Rp2.9 trillion.

Based on a research published by PT Danareksa Sekuritas on August 29, The value implies 10.9x-8x and 15.7x-11.5x of estimateD price to earning ratio (P/E) 2009-2010.

Danareksa and BNP Paribas are underwriters who will help BW to set up initial public offering of 30% shares worth US$100 million.

In comparison, valuation of BW's peers, PT Astra Agro Lestari Tbk is traded at 14.9x P/E 2010, while PT PP London Sumatra Indonesia Tbk stays at 14.6x P/E 2010. PT Sampoerna Agro Tbk and PT Bakrie Sumatera Plantations Tbk are traded at valuation of 11.5x and 10.8x P/E 2010.

In the next three years, BW is calculated to spend capital of Rp1.2 trillion for planting and mills and infrastructures.

BW Corporate Secretary Kelik Irwantono said around Rp900 billion of the company total expenditure, expected from IPO, is for planting of 30.000 hectares. BW land bank is around 96.000 hectares in Central Kalimantan, East Kalimantan, and South Kalimantan. Of the total, 32,432 are planted.

The company posted Rp86.55 billion net profit in 2007, stunning jump from previous year of Rp10.91 billion. BW revenue elevated from Rp139.25 billion in 2006 to Rp340.44 billion two years ago. Majority shares of the company is owned by BW Investindo of 50%, while Fendalton Investments holds 30%.

Chandra Asri to unveil US$250 million bond

PT Chandra Asri Petrochemical Center, a subsidiary firm of PT Barito Pacific Tbk, a resources and chemical-based firm curbed by tycoon Prajogo Pangestu, has planned to unveil US$250 million bond to snap up fresh cash from the debt market stunning reversal.

Chandra Asri, ethylene and propylene maker, will use the money to prop up its expansion. The company has designated two foreign houses DBS Securities and Deutsche Securities to tackle the bond issuance.
Based on Barito first quarter financial result, Barito curbs 70% of Chandra Asri and 77.93% of PT Tri Polyta Indonesia Tbk, a polypropylene producer.

Barito acquired Chandra Asri worth US$1.05 billion in 2007 by using fresh money from rights issue of Rp9.16 trillion. The acquisition sent Barito to book a deluge goodwill of Rp1.56 trillion, making its bottom line in red.

4 Houses clampdown Mandiri subdebt

PT Bank Mandiri Tbk has eventually to designate four local houses to help underwriting of Rp3 trillion subdebt.

The underwriters, PT Bahana Securities, PT Danareksa Sekuritas, PT Mandiri Sekuritas, dan PT Trimegah Securities Tbk, will help Bank Mandiri to issue idr bond in the last quarter this year to underpin capital. "Bank Mandiri keens to maintain unflagging growth momentum," Bank Mandiri Director Thomas Arifin said as reported by Detik.Com.
Subdebt issuance, prodiving fixed rate and 5-10 years maturity, will spur Bank Mandiri capital adequacy ratio as well. The bank credit has grown 21.4% or Rp32 trillion from Rp149.6 trillion to Rp181.6 trillion during the first half this year.

UNSP hammers out rights issue?

PT Bakrie Sumatera Plantations Tbk (UNSP) is reported to find a possible way of financing from rights issue. The fresh money could be utilized by a CPO and rubber-based producer under Bakrie Group to prop up its vigorous acquisition to Domba Mas Group valued around Rp8 trillion, inclusing debt and equity.

So far, UNSP is yet to publish its first half financial result. The biggest obstacle for UNSP is to collect consents from Domba Mas creditors such as PT Bank Mandiri Tbk and Credit Suisse.

As reporter by Bisnis Indonesia today, Domba Mas total debt to Bank Mandiri is around Rp3.3 trillion, while US$220 million to Credit Suisse. In 2007, Domba Mas or dubbed Sawit Mas, strived to seek cash from its holding firm IPO called MP Oleo. But, the plan was delayed.

MP Oleo is a holding firm of its two main business, plantations and oleochemical. Companies such as PT Batanghari Sawi Sejahtera, PT Aditarawan, PT Arta Prigel, PT Kaswari Unggul, PT Ekajaya Multi Perkasa, dan PT Perkebunan Intisawit Subur are under CPO business.

Via Domas Agro Prima, three firms are in oleochemical industry such as PT Sawit Mas Agro Perkasa, PT Domas Agro Inti Perkasa, dan PT Domas Sawitinti Perdana.

Sawit Mas Group operates 300.000 hektares of CPO plantation in North Sumatra , Aceh, Riau, South Sumatra, Jambi, dan East Kalimantan.

Buyers eschews stellar Berau

For a holding firm of PT Berau Coal, PT Armadian Tritunggal, an assured schedule of initial public offering (IPO) is rare.
After a week delaying its binding price offering timetable from September 3 to September 10, Armadian IPO seems far from this year.

Berau President Director Bob Kamandanu, reported by Bisnis Indonesia today, said IPO needs more time to accomplish.

Roadshow is scheduled in December 2009. But, he said IPO preparations, helped by three underwriters Bahana Securities, Deutsche Bank, and Bank of America-Merrill Lynch, is underway. A source familiar with the matter said Armadian is able to grab more than US$100 million in IPO.

Rizal Risjad, Berau controlling share holder, keens to divest up to 90% of shares worth US$1 billion. Armadian is holding 51% of Berau, while Rognar Holding BV and Sojitz Corporation have 39% and 10%. Rizal, a son of tycoon Ibrahim Risjad during President Soeharto era, controlls Berau via PT Risco which owns 100% of Armadian.

What about bidders?

My source said after Huaneng Power International and Siam Cement scrapped their plan from Berau deal last month, the remaining buyers are PT Indika Energy Tbk, a company wholy owned by tycoon Sudwikatmono, PT Quattro Capital Investama, an special purpose firm of Surabayan Kentjana Widjaja with his close partner Daesang, South Korea.

The others are PT Medco Energi Internasional Tbk and Recapital Advisors, backed by PT Bumi Resources Tbk.

But, yesterday I heard Medco had decided to pull out from the deal, while there is a glimmering talk from Recapital as well. So, the only potential buyers for Berau so far are Indika and Quattro. I hear an rumour that Texas Pacific Pacific Group is on the short listed of Berau deal.

Medco Corporate Secretary Cisca Alimin said the company is discussing strategy related to the corporate action. "We can't comment about that as uncertainty persists. We will make announcement tomorrow [today]."

Adaro designates 3 bond underwriters

PT Adaro Energy Tbk, the biggest single coal mining producer in Indonesia, is setting an enviable strategy to tap fresh money from debt market.

Before unveiling a request for proposal to around 15 both local and overseas banks, Adaro has designated the top three underwriters, DBS Vickers Securities, Credit Suisse, and UBS Securities in a bid to help launching US dolar dominated bonds.

According to exectives familiar with that matter, Adaro keens to grap around US$1 billion or Rp10 trillion in order to prop up its agressive expansion during a debt market bounce back.

Looking at Adaro's first half result, it has cash equivalent of Rp4.21 trillion, soaring from a year before of Rp1.78 trillion.

Adaro, via its unit company PT Makmur Sejahtera Wisesa, has set up power plant with capacity of 2x30MW to supply electricity for coal mining. A total cost to build the plant is estimated around US$150 million. The coal company is looking an opportunity to buy a coal asset of BHP Billiton at Tambang Haju and Lampunut field at Central Kalimantan.

Endorsed by a sparkling first half result, Adaro has net debt of Rp7.21 trillion, while debt to equity ratio is around 41.25%. In comparable with its peers, PT Bumi Resources Tbk, the biggest coal producer in Indonesia, Adaro's financial performance remains intact. In the first quarter this year, Bumi has net debt of US$1.54 billion, larger than Adaro's net debt.

Kalbe grabs Saka Farma

A giant integrated pharmacy firm PT Kalbe Farma Tbk (KLBF), via its unit company PT Bintang Toedjoe, has bought 20% of stakes at PT Saka Farma Laboratories worth Rp15 billion. By acquiring the minority stakes, Kalbe is now controlling 100% of Saka Farma.

According to Kalbe Corporate Secretary Vidjongtius as reported by Detik.Com today, the company seized Saka Farma on August 31 2009. Saka Farma is food suplementary producer. Before buying the remaining stakes, Kalbe is steering 80% of Saka Farma.

Kalbe is eyeing majority stakes of PT Bristol-Myers Squibb Indonesia as well. During the first half this year, Kalbe cash on hand reaches Rp1.97 trillion, a sharp increase from a year before of Rp1 trillion.