PT Berau Coal Energy, parent company of Indonesia's fifth largest coal miner PT Berau Coal, has determined to offload 3 billion shares in the primary market via initial public offering at the price of Rp300-Rp400 per share.
By considering the price, Berau Coal Energy will snap up cash of Rp900 billion to Rp1.2 trillion. The current size is 4 billion shares lower than initial plan mentioned in the IPO prospectus of 7 billion shares on the back of raising funds from bond issuance and band loans.
Berau Coal's Commissioner Rosan Perkasa Roeslani said Berau Coal Energy has secured loan facilities worth US$400 million from some foreign banks including Credit Suisse, Deutsche Bank, and a Chinese bank.
In parallel, Berau Coal is underway to issue US$350 million bond, offering interest rate of 12.5% for 5 year maturity.
"About US$600 million will be used to refinance debt to Credit Suisse," he said. The IPO proceed of around US$100 million will be used to finance capital expenditure in the next three years.
Berau Coal aims to jack up coal production volume from 17.9 million tons in 2010 to 21 million tons in 2012. As of June this year, revenue has reached US$475 million from a year earlier of US$376 million.
Rosan, owner of PT Bukit Mutiara, the company plans to convert its debt worth US$580 million into Berau Coal Energy's shares.
Berau Coal Energy, which is now wholly owned by PT Bukit Mutiara, special purpose vehicle (SPV) of PT Recapital Advisors,
Bukit Mutiara is 99.6% owned by PT Bentara Energi Asia Utama and Arnanto holds 0.4% stakes. PT Recapital Advisors owns 99% of Bentara Energi and Andy Widya Susatyo hold 1% stakes in Bentara.
Recapital Advisors is 99.11% controlled by PT Tripillar Gunaperkasa, while the remaining is owned by Rosan P. Roeslani, Recapital Advisors' President Directior.
Tripillar Gunaperasa is controlled by Rosan Roeslani of 73%, Sandiaga S. Uno of 12%, and Elvin Ramli holds 15% stakes.
Berau Coal is scheduled an offering on August 10- August 12 and followed by listing time table on August 19 2010 at Indonesia Stock Exchange.
Disclosure: No position at the stock mentioned above.
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