Nov 19, 2010

DOID soars 8.26% on TPG speculation

Coal mining contractor PT Delta Dunia Makmur Tbk (DOID) today soared 8.26% to Rp1,180 per share, highest jump since October 13, spurred by a market rumor that Texas Pacific Group (TPG) would sign acquisition agreement with Bakrie Group and Sinarmas Group.
Several stock traders said the market speculation said that TPG and GIC, Singapore-based sovereign wealth fund, has agreed to acquire majority stake in Delta Dunia indirectly from Bakrie and Sinarmas Group at IDR1,150 per share.
Referring to the current market price, Delta Dunia valuation is about 17.07x annualized price to earning ratio (PER). It is lower than valuation of PT Bumi Resources Tbk, which is traded at 21.81x annualized PER. 

Disclosure: No position at the stock mentioned above.  

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