Oct 28, 2010

IDX resumes Arpeni Ocean Line trading

Indonesia Stock Exchange (IDX) this morning lifted the suspension on PT Arpeni Ocean Line Tbk (APOL), thus it now can be traded in the regular and cash market.
In the information disclosure published in Indonesian Stock Exchange (IDX) site mentioned the stock exchange suspended Arpeni shares after the official announcement from the market on September 20, 2010.
Before it was suspended, Arpeni (APOL-coded stock) shares traded on September 17, 2010, the price dropped to Rp108 per share.
This morning, the shares soared 19.44% to the level of Rp129 per share.
Meanwhile, Saratoga Capital, the private equity firm, has entered into an agreement with PT Arpeni Ocean Line Tbk (APOL) to buy US$60 million of convertible bonds and new shares issued by the listed company.
According to a source who knows the detail about this transaction said that PT Rothschild Indonesia pointed out to manage the debt restructuring of the company, including the issuance of convertible bonds and new shares.
In the agreement, Saratoga Capital plans to buy US$60 million of convertible bonds issued by Arpeni and US$ 70 million of new shares.
The question is, will Saratoga give additional value to Arpeni? Currently, in Indonesia there are only two private equity firms engaged in coal business, namely Saratoga and Quvat Capital Management Ptd. Ltd. However, Saratoga has a larger volume of business compared with Quvat.
Saratoga’s investment in coal business, related to the business undertaken by one of the coal producer, PT Adaro Energy Tbk.
By acquiring Arpeni, Saratoga hopes it will realize a business synergy with shipping industry owned by the company.

Disclosure: No position at the stock mentioned above.

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