Oct 11, 2010

Saratoga to convey synergies to Arpeni

Stellar private equity firm Saratoga Capital has entered into term sheet agreement with PT Arpeni Pratama Ocean Line Tbk (APOL) in a bid to acquire US$60 million convertible bonds (CB) and new shares issued by the bulk liquid shipping company.
A source familiar with the matter said famed foreign investment bank dubbed PT Rothschild Indonesia is advising Arpeni's debt restructuring, including CB and rights issue.
Under the term sheet agreement, Saratoga Capital is aiming to buy US$60 million CBs to be issued by Arpeni Ocean Line as well as US$70 million rights issue.
Will Saratoga add more values for Arpeni Ocean Line?
In Indonesia, there are two private equity firms propelling coal barging business, Saratoga Capital and Quvat Management Ptd Ltd. But, Saratoga's coal barging is bigger than Quvat.
"Saratoga manages coal barging investment, regarding to Adaro business. By acquiring Arpeni, Saratoga hopes a synergy with Arpen's coal shipping business.
But, the problem of bankruptcy filed by Korea Securities Finance Corporation against Arpeni Ocean Line persists. Saratoga Capital should settle Arpeni's debt to Korea Securities if the deal could be exercises.
Disclosure: No position at the stock mentioned above.

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