MASA in talks with CIMB & HSBC

PT Multistrada Arah Sarana Tbk (MASA) is in frenzy talks with two lead arrangers CIMB and HSBC for finalizing a syndicated loan agreement worth US$200 million.

A source familiar with the matter said Multistrada, that is led by Pieter Tanuri, former owner of PT Trimegah Securities Tbk (TRIM), is going to use the syndicated loan to prop up its tire production capacity expansion until 2013.

"To underpin the expansion, MASA will approximately secure US$150 million in loan and US$50 million is intended to bankroll its working capital," the source said.

Multistrada is planning to jack up car tire production capacity to 28,500 units per day and motorcycle tire production to 16,000 units daily until 2013.
According to a research report published by Pefindo on January 15 2010, MASA continues to rise car tire production capacity from 12,827 units to 15,000 units daily during 2008-2009.
In the same period, the tire producer with such famed tire brands such as Corsa, Strada, and Archilles, also extended its motorcycle tire production capacity 205% year on year from 2,394 units to 7,300 units a day.
Multistrada recorded tremendous growth in recent years. During 2005-2008, sales rose approximately 56.5% CAGR from Rp0.22 trillion in 2005 to Rp1.3 trillion in 2008.
As of end of September 2009, MASA successfuly raised its sales 19.2%, hitting Rp1.2 trillion from Rp1.01 trillion  in last year. In line with production capacity expansion, MASA is estimated to generate Rp1.7 trillion in 2009 sales, grew 27.4% year on year.
Pre-tax profit in 2009 could reach Rp229 billion, a skyrocket from a year before of Rp6 billion. EPS was estimated to reach Rp26.9 per share last year from Rp0.5 per share in 2008.

MASA is one of outstanding tire producers in Indonesia. "Pefindo estimates that MASA's total car tire production represents 13% of the total car tire production in Indonesia."
As of September 2009, MASA's car tire production reached 3.51 million units compared to national production of approximately 27.6 million units. In 2010, MASA is estimated to book Rp2.47 trillion in sales with pre-tax profit of Rp353 billion with EPS of Rp41.5.

Low interest & forex gain underpin ITMG

Coal mining producer that is controlled by Banpu Plc Thailand, PT Indo Tambangraya Megah Tbk (ITMG), reached a 42.82% rise in net profit last year as a result of better operating performance and lower debt interest expense.

As of December 2009, Indo Tambang posted US$335.55 million or US$0.30 per share in net profit from a previous year of US$234.93 million or US$0.21 per share. Thanks to the rise of other income.

The company's debt interest expense fell sharply from US$4.93 million in 2008 to US$632,000 in 2009 whilst foreign exchange gain last year of US$4 million from a year before of forex loss of US$17.98 million.

ITMG's operating profit last year rose 28.18% from US$340.01 million in 2008 to US$435.82 million due to an increase of revenue.

For the period ended in December 2009, the company posted 13.64% in revenue increase from US$1.32 billion in 2008 to US$1.51 billion.

In return, Indo Tambang's operating margin increased from 25.81% in 2008 to 28.89% that signaled more profitability it could earn.

In February 2010, South Kalimantan Authority suspended operational of PT Jorong Barutama Greston, ITMG's coal mining subsidiary, due to delays in the issue of a renewed borrow and use permit for forestry areas used by Jorong Barutama.

Indo Tambang Group is in talks with South Kalimantan Authority, including Ministry of Energy and Mineral Resources, and Ministry of Forestry to resolve this issue.

Jorong Barutama sales revenue and net income in 2009 were US$111.14 million or 7.4% and US$7.37 million (2.22% of the Group revenue and net income in 2009 of US$1.51 billion and US$335.55 million

Jorong Barutama's total assets were US$91.59 million or 7.6% of the total assets of ITMG Group as of December 2009.

IndoAgri profit rises 92% on asset gain

Indofood Agri Resources Ltd (IndoAgri), CPO plantation company that is controlled by instant noodle maker PT Indofood Sukses Makmur Tbk (INDF), booked a 92.5% jump in net profit after tax last year to Rp2.05 trillion compared to a year before of Rp1.07 trillion due to gain from change in fair value of biological assets.

But, in terms of revenue, IndoAgro suffered a 23.6% drop in revenue last year as a result of lower average selling prices of plantation crops and edible oil products as well as tumble of cooking oil sales volume.

IndoAgro reached Rp9.04 trillion in 2009 revenue from previous year of Rp11.84 trillion. The company's 2009 EBITDA posted a slightly decrease by 3.3% from Rp3.09 trillion in 2008 to Rp2.99 trillion last year.

Despite lower EBITDA, IndoAgri enabled to jack up EBITDA margin from 26.1% in 2008 to 33% on lower operating expenses and foreign currency gains.

As of December 2009, IndoAgri owns a land bank of 547,287 hectares spread throughout Indonesia. Of this, 193,613 hectares and 21,738 hectares are planted with oil palm and rubber respectively. IndoAgri also has 12,370 hectares of other crops such as sugar cane, cocoa, tea, and coconut.

Antam net profit plunges 59.12%

State-owned nickel and gold mining producer PT Aneka Tambang Tbk (Antam) posted a steep plunge in 2009 unaudited net profit by 59.12% to Rp559.25 billion or Rp58.65 per share from a year before of Rp1.37 trillion or Rp143.48 per share.

In Antam 2009 unaudited result submitted to Indonesia Stock Exchange today, the company's bottom line fell due to lower sales and operating profit.

As of December 2009, it booked a slightly drop in sales by 9.59% from Rp9.59 trillion to Rp8.68 trillion.

The largest sales contributor was gold, which accounted for 50%, followed by nickel contained in ferronickel at 24%, and nickel ore at 19%. Antam’s revenues were 64% exports, and substantially all in dollar denominated.
For Antam, gold was the largest revenue booster as revenues from precious metal increased 58% to Rp4.32 trillion due to higher trading volumes and prices. 

The state-owned produced 2,626 kg of gold and sold 12,893 kg of gold in 2009. Last year's gold sales volume was 31% higher over the same period last year.
The price of Antam’s gold rose 11% to US$970.97/oz. Despite higher revenue from trading activities, profits were small as trading activities had small margins. 

Nickel contained in ferronickel revenues decreased 40% to Rp2,118 billion due largely to lower prices and
volumes. Antam produced 12,550 tonnes of nickel contained in ferronickel and exported 14,191 tonnes in 2009. 

Sales volume of ferronickel was 17% lower compared to 2008. The average price of Antam’s nickel contained in ferronickel over the period decreased 33% to US$6.63/lb. Nickel ore sales decreased 43% to Rp1,694 billion due to lower prices and volumes. Antam produced 5.8 million wet metric tonnes (wmt) of nickel ore and sold 4.9 million wmt of nickel ore in 2009.

Antam's operating profit dropped 61.11% from Rp1.45 trillion last year to Rp565.54 billion in 2008.

Astra reaches high record in profit

Indonesia largest automotive distributor and manufacturer PT Astra International Tbk (ASII) booked Rp10.04 trillion or Rp2,480 per share in high record of net profit last year, rose 9% compared to a year earlier of 9.19 trillion or Rp2,270 per share.

The company's consolidated revenue last year reached Rp98.53 trillion, slightly higher than a year before of Rp97.06 trillion. Last year operating profit grew 7% from Rp11.87 trillion in 2008 to Rp12.76 trillion.

UNTR posts 45% jump in net profit

Heavy equipment distributor PT United Tractors Tbk (UNTR) posted 45% jump in 2009 net profit due to a tremendous profit of Indonesia largest coal mining contractor PT Pamapersada Nusantara.

UNTR booked Rp3.82 trillion in net profit last year compared to the same period in 2008 of Rp2.66 trillion.

Revenue of Komatsu heavy equipments slightly downed to Rp29.25 trillion as of 31 December 2009 from a year before of Rp27.90 trillion

Subsidiary of PT Astra International Tbk (ASII) improved its productivity and efficiency, which in return providing UNTR a 24% higher operating profit from Rp4.16 trillion to Rp5.17 trillion.
Pamapersada was the largest booster for United Tractor which counted 53% of its consolidated revenue. In contrast, UNTR's previous revenue main contributor for years, heavy equipment sales, fell and took 37%, and the remaining was made by coal mining producer PT Dasa Eka Jasatama.  Last year, United Tractors sold 3,111 unit of heavy equipments, a 28% drop compared to a year before.

Mining sector took a majority portion of heavy equipment sales of 55%, while plantations and construction provided 22% and 14% of contributions respectively, and the remaining was from forestry.

Pama coal production volume grew 15% and overburden removal  rose 35% from 59 millions ton and 441.9 bank cubic meter of overburden removal to 68 million tons of coal and 597.9 million bcm last year. Dasa Eka Jasatama coal output fell from 3.7 million tons in 2008 to 2.4 million tons last year.

Macquarie crosses BSDE at Rp600/share

Macquarie Capital Securities Indonesia today crossed 1.70 billion shares of developer firm under Sinar Mas Group, PT Bumi Serpong Damai Tbk (BSDE), at the level Rp600 per share.

In total, shares crossing transaction valued Rp1.02 trillion, sending Macquarie Securities as the leading top brokerage with the biggest transaction value today of Rp2.38 trillion.
Referring to the crossing, BSDE's private placement sole arranger, Macquarie used 173 million shares of upsize option of a total 656 million shares.

Bumi Serpong has placed 1.53 billion shares or approximately 14% shares into the market today. If BSDE offloads all the upsize option, the company's founder, Sinar Mas Group will grab US$160 million in total cash.

Top  three brokerages with net buy position are Macquarie worth Rp29.56 billion, CLSA Rp28.57 billion, Bank of America Merill Lynch Rp9.18 billion.

BSDE placement at 23% discount

A property developer under Sinar Mas Group, PT Bumi Serpong Damai Tbk (BSDE), and private placement sole arranger Macquarie Securities, tonight bets its fortune by offering 1.53 billion shares or approximately 14% at discount price range to investors.

A source familiar with the matter said Macquarie few hours ago just sent out shares sale memo to investors with hope that BSDE's founders enable to grab US$160 million in cash. 

"Macquarie is trying to grab US$160 million in cash by offering BSDE shares at the price range of Rp600-Rp750 per share, steep discount from market closing level today," the source said to Insider Stores.

BSDE today fell Rp10 to Rp780. Referring to the closing price, the placement price is offered at 3.85%-23% discount. Macquarie and Bumi Serpong are also offering potential upsize of 656 million shares or 6% shares. 

The source said last week saw a tough way for Macquarie when it tried to offer BSDE to investors at a higher price. 

Some said Macquarie already gave up considering the 'cold' responds from investors. "Offering property companies to investors is uneasy, given Bumi Serpong is an affiliated firm of Sinar Mas Group. They can sell  BSDE at a discount," a foreign investment banker said.     

Paraga Artamida controls 37% stakes or 4.05 billion shares in Bumi Serpong, while Warner Investments owns 31% stakes or 3.39 billion shares. Serasi Niaga Sakti holds 6%.

During a private placement tonight, Warner Investments, PT Serasi Niaga Sakti, and PT Pembangunan Jaya will divest their shares in Bumi Serpong.

CS & Morgan Stanley and BTEL bond

Two foreign investment banks, Credit Suisse and Morgan Stanley may have strong position to be lead arranger and bond underwriter of CDMA-based cellular operator PT Bakrie Telecom Tbk (BTEL) worth US$200 million-US$300 million.

A source familiar with the matter said Credit Suisse is close and has good relationships with Bakrie Group, while Morgan Stanley, that is now led by Andi Purwohardono, former PT Danareksa Sekuritas' president director, is hungry for both debt and equity deals in Indonesia.

Bakrie Telecom will use the proceed from bond issue to refinance its debt. Speaking in January, President Director Anindya Bakrie said the company has a total debt of US$200 million.
"We are underway to get ratings from international rating agency. If we think that the market is favorable for the new issue, we will be in the market soon," he said.
According to him, BTEL, CDMA-based operator with Esia brand, has set target of 14 million subscribers, while capital expenditure will be allocated of US$200 million.
In September last year, Bakrie Telecom posted Rp2.54 trillion in net profit, grew from a year before of Rp1.99 trillion. But, operating profit downed from Rp270.13 billion to Rp223.02 billion in September last year due to ballooning operating expenses.

In return, the operator's net profit dropped to Rp97.33 billion from September 2008's position of Rp121.25 billion. As of September last year, long term debt recorded Rp1.31 trillion from a  year before Rp1.36 trillion.     

Fleeing Danareksa, Sebastian joins BW

Sebastian Sharp, Head of Research of PT Danareksa Sekuritas, is leaving financial sector and moving into CPO-based company.

A source said Sebastian is appointed to be new Head of Investor Relations in PT BW Plantation Tbk (BWPT) that just entered the stock market in November last year. 

"So far Kelik Irwantono, BW Corporate Secretary handles both journalists and investors or analysts. With the new comer in investor relations division, Sebastian may focus on his job to bring BW into investors and analysts," the source said. 

Kelik Irwantono, BW's Corporate Secretary, confirmed about the appointment of Sebastian Sharp. Sebastian didn't respond questions sent via sms to his cellular. 

BWPT may propose 10% dividend ratio in annual general meeting that will be scheduled on March 30 2010.

A local fund manager said the company, which just enrolled the stock market, in November last year, is estimated to post Rp170 billion in net profit last year.
Adding to that, BW will propose Rp17 billion of annual dividend this year. Divided with its outstanding shares of 4.04 billion shares, BW may consider 2009's dividend of Rp4.20 per share. BWPT is traded at around Rp610 per share, Rp10 or Rp4,2% higher than yesterday closing level.

BTPN Rp750 bio bond is on the way

PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) is planning to unveil Rp750 billion bond in the first half this year in a bid to bankroll credit expansion.

According to BTPN President Director Jerry Ng, the bank will issue some tranches with tenor of 3 years-5 years.

"When the financial market is favorable, we will enroll the bond market in the first half," he said today.

The bank entered the debt market by selling Rp750 billion bond, an upsize from initial Rp500 billion, due to oversubscribed.

Given the bond issue planning, BTPN has financing facility commitments of Rp1.5 trillion which will be used to support credit expansion.

The bank's 2009 net profit rose 11% to Rp420.4 billion compared to the previous year of Rp378.9 billion. Today, BTPN shares closed 0,79 lower to Rp6,250 per share.

Astra Graphia profit grows 7.14%

Information technology based company PT Astra Graphia Tbk (ASGR) book a slight bottom line of 7.14% from Rp62.49 billion or Rp46.33 per share in 2008 to Rp66.95 billion or Rp49.64 per share.

The company's revenue rose 30.99% from Rp1.03 trillion in 2008 to Rp1.34 trillion last year. Operating profit slightly increased by 6.56% from Rp105.91 billion to Rp112.86 billion last year.

As of December last year, Astra International controlled 78.57% stakes in Astra Graphia, whilst public holders held 23.13% stakes.

Tony Wenas to be new INCO President

PT International Nickel Indonesia Tbk (INCO) today announced the nomination of Tony Wenas as new President Director of INCO, replacing his predecessor Arif Siregar from his position.

Tony Wenas most recently held the position of Director and Executive Vice President or General Counsel of PT Freeport Indonesia.

"INCP has been fortunate to have had tremendous leadership in the past from its management. I am confident that Tony Wenas will continue in this tradition. Wenas's broad base of practical experience, management skill, and industry knowldge will complement the skill in INCO," said Tito Martins, INCO's President Commissioner in a public statement today.

Arif Siregar resignation and Wenas's appointment are subject to the approval of INCO's share holders at extraordinary general meeting which will be scheduled on March 5 and to standard regulatory approvals.

Lonsum CPO sales volume rises 5.7%

PT PP London Sumatra Indonesia Tbk (Lonsum) reached CPO sales volume of 374,134 tons last year, a 5.7% growth from a year before of 353,861.
The CPO sales came from domestic market of 86%, of which 41% was to parent company PT Salim Ivomas Pratama, 45% went to third parties domestic, and the export market took the remaining.
In a public statement to Indonesia Stock Exchange today, palm kernel sales volume posted 93,796 tons, rose 14.2% from a year earlier of 82,158 tons.
Fresh fruit bunch (FFB) sales volume fell 6.3% from 48,945 tons in 2008 to 45,837 tons last year. By the end of last year, Lonsum's total planted area for nucleus are now over 100,000 ha, of which 79% are oil palm, 17% are rubber, and the balance are other crops. London Sumatra managed total land banks of 215,917 ha. The company planted 3,605 ha of new planting and replanting was 810 ha.

BW may propose 10% dividend

CPO producer PT BW Plantation Tbk (BWPT) may propose 10% dividend ratio in annual general meeting that will be scheduled on March 30 2010.

A local fund manager said the company, which just enrolled the stock market, in November last year, is estimated to post Rp170 billion in net profit last year.

Adding to that, BW will propose Rp17 billion of annual dividend this year. Divided with its outstanding shares of 4.04 billion shares, BW may consider 2009's dividend of Rp4.20 per share. BWPT is traded at around Rp610 per share, Rp10 or Rp4,2% higher than yesterday closing level.

In a public statement today, BW announced annual general meeting with six agendas, one of them is to decide the use of last year net profit.

(BWPT) was estimated to book a 21.94% growth in net sales last year due to a steep jump in CPO sales volume of 36.6%. In a company report, BW posted net sales of Rp550.32 billion last year from a year before of Rp451.30 billion.

BW Plantation CPO sales volume grew 36.6% from 89,965 tons during January-December 2009 compared to previous year of 65,884 tons. But, CPO average price last year dropped 10.7% from Rp6.85 million per ton to Rp6.12 million per ton.
CPO production jumped 36.8% to 91,382 tons in 2009 from previous year of 66,824 tons, while fresh fruit bunch increased 30% from 282,058 tons to 367,746 tons in 2009.
In 2009, the company planted additional 13,821 hectares, of which 12,732 ha are in its nucleus area and 1,089 ha in plasma, increasing its total plant area by 50% to 41,448 ha against 2008 figure of 27,627 ha. Matured area is 13,634 ha with productive palms in its early prime age averaging age of 9.6 years old.

PTBA coal sales may reach 14.3 M ton

PT Tambang Batubara Bukit Asam Tbk (PTBA) will see 2010 much better with demand for coal boosted by a strong domestic economy and a recovering global economy. 

In a research report published by PT Danareksa Sekuritas today, the recovery is already in place as indicated by the 30% quarter on quarter surge in sales volume to 3.8 Mt in 4Q09 and the big jump in trading volume. 

"we are increasingly confident that our 2010 coal sales volume estimate of 14.3 Mt can be attained by the company. Given the current rosy outlook, the shares look attractive at P/E 10F/11F of 16.3x/ 12.6x. Buy call maintained," Danareksa's analyst Metty Fauziah said in her report

Due to a weak coal market last year, Bukit Asam's full year 2009 operational results are slightly below our estimates. 

However, a recovery is already in place. This is reflected in the 30% QoQ surge in sales volume in the last quarter last year. 

The company produced 11.6 Mt of coal in 2009, or broadly in line with our estimate of 11.8 Mt.  Sales, however, at 12.5 Mt were only 94% of our FY09 estimate. This was attributable to weak coal markets-both domestic and international. 

In the domestic market, technical problems at PLTU (steam power plant) Tarahan coupled with lower demand for coal (as PTBA's regular customers downsized production capacity) resulted in 3% lower sales volume at 8.1 Mt. 

As for exports, they dropped 2% to 4.4 Mt but still did better than expected. The slowdown in coal sales could also be seen in the slump in PTBA's coal trading volume at 540 Kt in 2009 compared to 1.5 Mt in 2008. 

Higher earnings but still lower than our estimate Indicative 2009 revenues and net profits are Rp8.9tn and Rp2.8tn, respectively. 

These are 24% and 64% year-on-year increases, respectively (yet still below our estimates of Rp9.7tn and Rp3tn). 

"We believe that both lower realized ASP [our ASP assumptions are Rp727,000/ton for domestic sales and US$73/ton for exports) and lower sales volume are behind the lower-than-expected results," she said.

Cita Mineral acquires Karya Utama

PT Cita Minetal Investindo Tbk is planning to acquire 75% stakes in PT Karya Utama Tambangraya from PT Harita Jayaraya worth Rp224.25 billion.

The company will use the proceed from rights issue valued Rp224.72 billion to bankroll the acquisition deal.

Cita Investindo was agreed by extraordinary general meeting yesterday in a bid to hold a rights issue by issuing 2.25 billion new shares at exercise price of Rp100. 

Each existing share holder has rights to buy two new shares. Harita Jayaraya is a standby buyer for the rights issue.

Intiland Development buys 2 firms

PT Intiland Development Tbk (DILD) signed conditional share sale and purchase agreement with PT Wirasejati Binapersada to acquire 100% stakes in a company which is not yet mentioned.

In a public announcement today to Indonesia Stock Exchange, Intiland also signed an agreement with PT Putra Sinar Permaja to buy 90% stakes in a firm that is not yet named.

(DILD) eventually announced its rights issue plan with preemptive rights worth around Rp2 trillion. A source familiar with the matter said the company provides ratio three existing shares have rights to exercise two new shares which will be issued by Intiland at Rp1,100 per share. The company also gives warrants during such corporate action.
In line with the plan, Intiland has announced to hold an extraordinary share holders general meeting (EGM) scheduled on March 29 2010.
Adding to that, the company sets another interesting agenda about material acquisition of other property companies by Intiland's subsidiary.
At the end of September 2009, Intiland posted a lower revenue of Rp266.29 billion from a year before of Rp275.89 billion.

Astra Agro profit falls on forex loss

PT Astra Agro Lestari Tbk (AALI), subsidiary of PT Astra International Tbk (ASII) that has business in CPO sector, suffered a steep plunge in net profit last year of 36.88%.

Astra Agro's bottom line dropped from Rp2.63 trillion in 2008 or Rp1,670.76 per share to Rp1.66 trillion or Rp1,054.55 per share due to ballooning foreign exchange loss and debt interest burden.

AALI's 2009 financial report revealed that its interest burden widened from Rp179 million as of December 2008 to Rp30.62 billion last year. The company suffered Rp111.15 billion in forex loss last year, while it made a forex gain of Rp78.31 billion in 2008. Both combination factors dragged down Astra Agro's net profit.

The company's sales in 2009 also downed 9.07% from Rp8.16 trillion in 2008 to Rp7.42 trillion last year, which in return sank operating profit by 22.78% from Rp3.38 trillion to Rp2.61 trillion as of December last year.

In line with operating profit gloomy, Astra Agro's profitability was slashed as well. The company's operating profit margin fell from 41.42% in 2008 to 35.18%.

Astra Agro is 79.68% owned by Indonesia largest automotive distributor Astra International, while public holders control the remaining.     

PLN to seek US$900 mio financing

Indonesia state-owned electricity producer PT Perusahaan Listrik Negara (PLN) is seeking US$900 million loan in a bid to meet a total financing of 10.000 MW power plants roll out worth US$2 billion.

PLN Finance Director Setio Anggoro Dewo said of the total financing required, around US$1 billion is already fulfilled, which in return the projects still needs US$900 million or Rp9 trillion.

"We are in talks with national banks, I don't know whose banks are interested to bankroll the projects," he said today as reported by Bisnis.com.

According to him, PLN hopes to secure the financing this year. To meet the financing, PLN is dependent on rupiah denominated loan. 

PLN has accomplished the first stage of 10.000 MW power plants development worth US$5 billion. The company needs a total investment of US$21 trillion in 2010, which most of them is used to support the first stage of 10.000 MW power plans program.

Sona unit secures US$7.93 mio loan

Subsidiary of PT Sona Topas Tourism Industry Tbk (SONA), PT Sejahtera Alam Property, secured US$7.93 million loan from Bank ICBC Indonesia.

Wong Budi Setiawan, President Director Sona Topas, in a public statement to Indonesia Stock Exchange today, said the company signed loan agreement with ICBC on February 18 2010.

PT Inti Dufree Promosindo owns 49% stakes in Sejahtera Alam Property. As of September 2009, Sona posted Rp396.87 billion in revenue, decrease compared to the same period of Rp401.65 billion.

The company's operating profit fell from Rp46.89 billion to Rp39.28 billion at the end of September 2009.

But, Sona's net profit increased from Rp23.64 billion or Rp71 per share to Rp26.79 billion or Rp81 per share, underpinned by lower other charges from Rp15.75 billion to Rp5.19 billion as of September last year.

Bank Sulut launches Rp500 bio bonds

PT Bank Pembangunan Daerah Seluwesi Utara (Bank Sulut) is planning to issue fixed rate Rp450 billion senior bond and Rp50 billion subordinated bond.

In a prospectus published today, PT Andalan Artha Advisindo Sekuritas is advising and underwriting the bonds issue.

According to the the announcement, Bank Sulut will use the proceed of bonds issue to underpin credit expansion. Conventional bond will mature in the next five years as well as subordinated bond.

PT Pemeringkat Efek Indonesia affirms A- rating for Bank Sulut conventional bond with stable outlook, while subordinated bond obtains BBB+ with stable outlook.

Matahari posts Rp13.8 trillion sales

PT Matahari Putra Prima Tbk (MPPA) booked Rp13.8 trillion in sales last year, grew 15% compared to a year before of Rp12 trillion.

Matahari President Director Benjamin J. Mailool said the company posted a sales increase underpinned by a positif performance of two main businesses Matahari Department Store (MDS) and Matahari Food Business (MFB).
"MDS posted Rp6.9 trillion in sales last year, rose 16.1% compared to previous year, while MFB booked Rp6.5 trillion in sales, grew 23% from a year before," he said in a press statement today.

In 2009, MDS opened four new counters as well as MFB. According to Benjamin, Matahari Putra Prima is underway to transform itself from department store network into the largest retailer with various format in cooperation with 6,000 local and foreign suppliers.

CVC Capital Partners, one of largest private equity company globally, has agreed with MPPA to settle 90.76% acquisition of PT Matahari Department Store Tbk (MDS) (LPPF)with combination of cash, shares and warrants issue, and vendor loan.

MPPA and CVC on January 23 2010 signed sale and purchase agreement of 90.76% or 2.65 billion shares at MDS worth Rp7.17 trillion or Rp2,705.33 per share.
CVC, that acquires MDS via Meadow Asia Company Limited (MAC), will control 80% stakes at MAC and the remaining goes to MPPA. In return, CVC will effectively own 72.16% stakes at MDS.
The private equity, headquartered in Luxembourg, Europe, will pay MDS deal with cash, shares and warrants that will be issued by MAC, and loan from MAC or its subsidiaries, to MPPA.          
According to an analyst from a local brokerage, MPPA, which is controlled by Riady family through AcrossAsia Limited Hong Kong and PT Multipolar Tbk, will obtain at least Rp3 trillion of net cash from the deal, given MPPA has net debt of Rp1.3 trillion.

Recapital grabs Bank Eksekutif at Rp150

Controling share holder of PT Bank Eksekutif International Tbk (BEKS) agreed to dispose 79.26% stakes to Recapital Advisors at Rp150 per share, totaling Rp101,51 billion.

"Yes, that is the price [Rp150]," said Bank Eksekutif Director Tonni Antonis as reported by Detikcom today.

The sale price is 25% higher that BEKS last closing level at Rp120 per share on last Friday. Bank Eksekutif is 50.66% controlled by Lunardi Widjaja, Lusiana Widjaja owns 14.49%, Irawati Widjaja 4.76%, while public holders own 20.74%.

In total Widjaja family controls 79.26% stakes in Bank Eksekutif. The acquisition will stimulate tender offer due to change of controling share holder in Bank Eksekutif.

Assuming that the tender offer price is Rp150 per share, Recapital must allocate Rp26.55 billion. In total, Recapital should be ready with Rp128.06 billion in cash. 

Recapital President Director Rosan P. Roslani declined to explain more detail about the transaction. "We can't publish the price."

Work hard for Indosat to stay No. 2

Indonesia second largest cellular operator PT Indosat Tbk (ISAT) has to work hard to stay ahead of its fiercest contender Malaysia-owned PT XL Axiata Tbk (EXCL).

In a research report published by PT Danareksa Sekuritas on February 18 2010, analyst Chandra S.Pasaribu said Indosat’s management has made clear its intention to defend its position as the second largest player in the telecoms industry and to challenge the market leader, PT Telekomunikasi Indonesia Tbk (TLKM). 

Within the group of telecommunication operators, Qatar Telecom (QTel) usually holds the leading position in each market. In Indonesia, QTel has similar aspirations. 

Indosat’s position as the second largest player in the telecoms industry is grounded in its 33 million total subscribers and its revenues share of 25%. 

Nonetheless, XL has closed the gap on Indosat and has seen its total number of subscribers increase to 31.4 million as of 2009, or only 2 million less than Indosat. 

In terms of the share of revenues, the gap between Indosat and XL has been reduced from 14% in 2008 to 7% in 2009. Achieving faster than market growth is essential for Indosat to maintain its leading position in the industry. Danareksa remains positive on the longer view and upgrade Indosat to buy.
Chandra had a 20-minute interview with Indosat’s CEO, Harry Sasangko and CFO Peter Kuncewicz. The discussion centered on Indosat and its business model in Indonesia, which has an emphasis on shareholders’ return and continued investment. 

"From the interview, we conclude that the medium term outlook for Indosat is looking brighter - especially since the company is focusing on the internet data business. We upgrade our recommendation on the counter to buy with a new target price of Rp5,670 per share," said Chandra in his report. 

A focus on smaller market segments is another strategy that Indosat shall pursue. Even though the voice and SMS market has reached maturity, Indosat believes there are opportunities to exploit the market through “sniper” segmentation – meaning different marketing and pricing strategies for different segments. However, the pricing strategy must not override its value strategy. 

In other words, the balance between pricing and network quality needs to be maintained such that Indosat
will not adopt cheap pricing to boost traffic volume as the network quality would be reduced.
Data will definitely play an important role in generating higher growth. Indosat has business plans to grow its internet business rapidly, possibly with a two fold increase within five years.

Indosat will focus on developing the infrastructure for the internet network and leave application development to third parties. 

The focus will be on both broadband and cellphone data. This is a different approach compared to XL which is focusing on data transmission for cellphones given its lower investment cost. As for TLKM, it intends to enter application development as well.

Astra Agro revenue falls 8% to Rp7.5 trio

CPO producer PT Astra Agro Lestari Tbk (AALI), darling of PT Astra International Tbk (ASII) is estimated to post a slight increase of fourth quarter 2009 revenue by 2% compared to a quarter before.

In a research report published by UOB Kay Hian Securities, AALI's revenue to grow by 2% to Rp1,9 trillion-Rp2 trillion in the last quarter 2009. thanks to higher sales volume for CPO (5% quarter on quarter) and palm kernel (17% qoq), offsetting the lower average selling price of CPO and palm kernel in the last quarter 2009. 

"However, on yearly basis, we expect AALI's total revenue to decline by 7%–8% year on year to about Rp7.5 trillion in 2009, again due to lower CPO average selling price offsetting from higher sales volume in 2009," said the research.

UOB expects that CPO production to increase by 4.8% yoy in 2010, in line with management guidance about 4%– 5%. 

However, in January 2009, the company posted flat growth in CPO production due to lower fresh fruit bunch (FFB) processed from plasma (-21% yoy) and third parties (-40.8% yoy). Plasma and third parties accounted for 29% of total FFB processed in January 2009. 

Astra Agro plans to expand its new planting area by about 10,000 ha – 15,000 ha in the next two years with the investment cost for immature area of about US$5,000 –6,000/ha for the first three years. 

 The company managed to increase new planting area by 13,153 ha in 2009, which was higher than the initial
expectation of 10,000 ha. 

The new planting area was mostly located in Kalimantan while the location for replanting of about 2,482 ha was in Sumatra.

United Tractors shiny earning

Heavy equipment distributor PT United Tractors Tbk (UNTR) still has room for earnings upgrades given currently low expectations. 

According to a research report published by CIMB on February 18 2010, potential upgrades could come from Komatsu sales upgrade to above 3,500 units.

Coal output from PT Pamapersada Nusantara, coal mining contractor with the largest market share in Indonesia, is upgraded to above 73.5 million tons, rebound in PT Dasa Eka Jasatama, coal mining producer, production from 200,000 ton in January 2010. 

"We have raised our Komatsu sales by 7%-10% and Pama’s output by 4%-8% for 2010-2011, ahead of company and consensus expectations," said CIMB analyst Rania Rahmundita in her report.

Over the past decade, UNTR’s earning per share growth has exceeded the market’s. While slowing down from the past three years which were spectacular years. But, EPS growth remains sizeable and continues to outshine the market. CIMB remains with outperform for UNTR and sets target price of Rp23,000 per share.

Heronswood reduces shares in MIRA

Heronswood Assets Management Ltd, one of creditors of PT Mitra International Resources Tbk (MIRA), sold 66.69 million shares in MIRA into the market, reducing its ownership from 5.24% to 3.56%.

In a foreign ownership data published by Indonesia Stock Exchange dates on February 19 2010, Heronswood now owns 141 million shares or 3.56% from 207.69 million shares or 5.24%.

MIRA has debt due on May 9 2010 to Heronswood Assets Management Ltd worth US$1.45 million, while as of September 2009, cash and cash equivalent of the company fell to Rp798.91 billion from a year before of Rp1.69 trillion.
Mitra Resources must pay the debt to Heronswood unless it will lose 10% stakes in Singapore-based company Sabre System International Pte Ltd (SSI)
According to MIRA's September financial report, the company owns 93.35% stakes at SSI, a company providing services of offshore production facility. MIRA had signed a loan agreement worth US$38.54 million with Heronswood Assets Management Ltd in September 2008. Mitra Rajasa used the proceed, which is charging an annual interest rate of Libor+2.5%, as part of acquisition financing of drilling company PT Apexindo Pratama Duta (APEX).

On December 9 2008, MIRA and Heronswood agreed to restructure short term loan into noninterest debt with 17 months maturity since December 9 2008. In result, MIRA must fulfill a monthly payment of US$1 million from the first month  to 16th month and US$1.45 million for 17th month. If MIRA fails to fulfill the installments at the end of period, Heronswood will seize 10% stakes at SSI.     
Morgan Stanley & Co Int. Plc controls 19.17% and PT Intikencana Pranajati owns 13.60% stakes at Mitra Resources.

Ridiculous solution for revised DNI

Indonesia publicly listed companies must follow a revised Presidential Regulation of Investment Negative List (DNI) Number III/2007 that will be issued in the next two weeks.

According to Indonesia Economic Coordinating Minister Hatta Radjasa, the limitation on public companies won't deter them to seek capital in the capital market.

"Public companies enable to seek capital by issuing new shares. But, they still pay attention on foreign ownership limitation in public companies," he said.

If foreign owns exceeding the revised DNI, Hatta said, public companies may offer those new shares to local investor.

According to Presidential Regulation, foreign may possible own maximum 25% stakes in forestry company, 75% stakes in pharmacy firm, 65% stakes in healthy specialist company, 49% stakes in telecommunication service provider, 49% stakes in education service firm, and 49% stakes in air flight cargo firm.

I think the solution offered by the government which makes local as preferred investor is ridiculous. How public companies differentiate foreign and local investor?

      

BRI needs Rp1.19 trio to control Bukopin

One of state-owned bank PT Bank Rakyat Indonesia Tbk (BRI) may propose its interest to acquire PT Bank Bukopin Tbk (BBKP) and PT Bank Agroniaga Tbk.

Minister of State Owned Enterprises Mustafa Abubakar said the government gives a green light for BRI to proceed its acquisition deal target. "We are open for BRI to buy Bank Bukopin and Bank Agroniaga," he said.

Pension fund of Perum Bulog, state-owned rice importer and distributor, called Kopelindo controls 39.39% stakes in Bank Bukopin, while Dapen Perkebunan, pension fund of state-owned PT Perkebunan Nusantara, owns 61.10% shares in Bank Agroniaga.

Early last month, BRI held a due diligence on a bank that will be acquired. According the bank plan, it will hold extraordinary general meeting in May in a bid to proceed acquisition deals. BRI management said it has allocated Rp2 trillion in cash to acquire those banks.  

With 5.95 billion shares listed, Bukopin market capitalization is now Rp2.35 trillion. If BRI wants to buy Kopelindo stakes in Bukopin, BRI at least to provide Rp925.66 billion.

Referring to BRI's President Director Sofyan Basir, the bank has intention to control those banks that will be acquire. In order to buy 51% stakes in Bukopin, BRI must be ready to allocate Rp1.19 trillion.

Fitch upgrades CP Prima to C

International rating agency Fitch Ratings has upgraded PT Central Proteinaprima Tbk (CP Prima) long-term foreign currency issuer default rating (IDR) from RD to C.
But, the rating of US$325 million unsecured bond due in 2012 issued by CP Prima subsidiary, Blue Ocean Resources Pte Ltd and guaranteed by CP Prima remains at C.

The rating action follows CP Prima announcement of 6 months standstill agreement on 17 February 2010 to the Indonesia Stock Exchange, which was approved by noteholders who represent more than 50% of the aggregate principal of the notes.

CP prima finally obtains more than 50% agreement from bond holders in a bid to make standstill agreement effective.

Under such agreement, bond holders of Blue Ocean Resources, are not allowed to execute bond collateral. Bond holders are forbidden to submit bankruptcy to the court.  CP Prima has intention to hold bond restructuring with their holders. Blue Ocean failed to pay the US$17.875 million semi-annual coupon on the notes on 27 January 2010.
The company continues to face tight liquidity primarily on the back of a virus contamination in its shrimp ponds. CP Prima is currently in the process of executing a 6 months standstill agreement with the note holders.

Holcim profit soars 217% on forex gain

One of cement maker PT Holcim Indonesia Tbk (SMCB) booked a steep jump in 2009 net profit by 217.39% due to foreign exchange gain.

The cement producer posted Rp895.75 billion in 2009 net profit compared to previous year of Rp282.22 billion, underpinned by foreign exchange gain of Rp372.20 billion from 2008's foreign exchange loss of Rp532,04 billion.

Holcim's sales last year rose 11.24% from Rp5.34 trillion in 2008 to Rp5.94 trillion, while its operating profit grew 39% from Rp1 trillion in 2008 to Rp1.39 trillion last year.

In line with net profit increase, Holcim's interest expenses soared from Rp213.90 billion in 2008 to Rp444.89 billion last year.

Both long term and short term debt payments last year eroded Holcim's cash and cash equivalent from Rp893.81 billion in 2008 to Rp380.25 billion.

The company cash was crippled by long term debt payment that rose from Rp1.95 trillion in 2008 to Rp2.03 trillion last year. Short term debt payment also elevated from Rp499.95 billion in 2008 to Rp655.67 billion last year.

As of December 2009, about 77.33% stakes in Holcim Indonesia was controlled by Holderfin B.V. Netherlands and foreign institutions with less than 5% ownership took 13.63% shares. 

BII to set Rp1.41 trillion rights issue

Maybank-owned subsidiary in Indonesia, PT Bank Internasional Indonesia Tbk (BII) sets Rp1.41 trillion rights issue with preemptive rights.
BII will issue 6.25 billion D series shares during the corporate action at the exercise of Rp225 per share. Every eight existing BII share holders deserve to obtain preemptive rights. Each rights may subscribe one new share.
In a public announcement today, BII warns that rights issue, will impact 11.11% of shares dilution, may be effectively after getting approval by extraordinary general meeting scheduled on March 26.
BII, that is 54.33% controlled by Sorak and 43.19% owned by MOCS, will use proceed from rights issue to underpin its credit expansion and jack up core capital.
The bank suffered  Rp40.97 million in net loss last year, a steep drop from Rp468.69 billion net profit a year before. The bank's net loss was due to Rp1.69 trillion provisions, while in 2008, it posted an extraordinary gain from assets disposal.
BII's net interest revenue rose 12% from Rp2.76 trillion in 2008 to Rp3.09 trillion last year. Total deposit grew 9% or Rp3.82 trillion to Rp47.34 trillion. Now, BII is traded up 1.85% to Rp275 per share.

MIRA coal acquisition deal flip flops

Parent company of PT Apexindo Pratama Duta Tbk (APEX), PT Mitra International Resources Tbk (MIRA), eventually scrapped US$40 million acquisition deal on coal mining companies PT Realita Jaya Mandiri and PT Masindo Artha Resources.

Mitra Resources and share holders of Realita and Masindo signed 100% stakes acquisition agreement on March 18 last year.

"Both parties determined to end agreement due to unable to fulfill further conditions of the transaction," Mitra International President Director Wirawan Halim in a public statement to Indonesia Stock Exchange today.

Realita Jaya Mandiri operates concession area of 1,598 hectares in Musi Banyuasin, Southern Sumatra, while Masindo owns mining area concession of 5,600 hectares and 4,400 hectares in Musi Banyuasin, Southern Sumatra.

I think that MIRA should review its expansion plan. It has debt due on May 9 2010 to Heronswood Assets Management Ltd worth US$1.45 million, while as of September 2009, cash and cash equivalent of the company fell to Rp798.91 billion from a year before of Rp1.69 trillion.

Mitra Resources should pay the debt to Heronswood unless it will lose 10% stakes in Singapore-based company Sabre System International Pte Ltd (SSI) 

According to MIRA's September financial report, the company owns 93.35% stakes at SSI, a company providing services of offshore production facility. MIRA had signed a loan agreement worth US$38.54 million with Heronswood Assets Management Ltd in September 2008. Mitra Rajasa used the proceed, which is charging an annual interest rate of Libor+2.5%, as part of financing for Apexindo.
On December 9 2008, MIRA and Heronswood agreed to restructure short term loan into noninterest debt with 17 months maturity since December 9 2008. In result, MIRA must fulfill a monthly payment of US$1 million from the first month  to 16th month and US$1.45 million for 17th month. If MIRA fails to fulfill the installments at the end of period, Heronswood will seize 10% stakes at SSI.      

Morgan Stanley & Co Int. Plc controls 19.17% and PT Intikencana Pranajati owns 13.60% stakes at Mitra Resources.

Intiland Development rights issue 3:2

A property developer PT Intiland Development Tbk (DILD) eventually announced its rights issue plan with preemptive rights worth around Rp2 trillion today to Indonesia Stock Exchange.

A source familiar with the matter said the company provides ratio three existing shares have rights to exercise two new shares which will be issued by Intiland at Rp1,100 per share. The company also gives warrants during such corporate action.

In line with the plan, Intiland has announced to hold an extraordinary share holders general meeting (EGM) scheduled on March 29 2010.

Adding to that, the company sets another interesting agenda about material acquisition of other property companies by Intiland's subsidiary.

At the end of September 2009, Intiland posted a lower revenue of Rp266.29 billion from a year before of Rp275.89 billion. 

Operating profit fell from Rp52.12 billion to Rp41.46 billion as of September 2009. Intiland's bottom line dropped from Rp28.71 billion or Rp9 per share to Rp14.64 billion or Rp5 per share.
UBS AG Singapore controls 37.08% stakes in Intiland, Credit Suisse Singapore on behalf of Strands Investment Ltd holds 33.15% stakes. DBS Bank and Mira Equities Inc own 5.95% and 5.25% respectively.

Benakat, TDE, and Elnusa shares pledge

On February 10 morning saw a crucial moment for PT Benakat Petroleum Energy Tbk (BIPI) dan PT Tri Daya Esta (TDE). 

Both involved in rally tough negotiation to reach agreement on shares sale of 37.15% or 2.71 billion shares in PT Elnusa Tbk (ELSA), an integrated oil and gas services company that is 41% controlled by Indonesia largest state-owned oil and gas firm, PT Pertamina (Persero).

In a public announcement to Indonesia Stock Exchange (IDX) today, After prolonged discussions since early 2010, Benakat, that is brought into the stock market by PT Danatama Makmur which is run by Houston Jusuf, a close friend of Bakrie family, signed a conditional share sale and purchase agreement with TDE.

TDE is owned by Indonesian tycoon Anton Sugiyono, owner of property constructor PT Duta Graha Tbk (DGIK) where Sandiaga Uno joins member of board of commissioner as well.

TDE finally agreed to sell 37.15% stakes in Elnusa at Rp330 per share or totaling Rp894.82 billion . The deal reached agreement just in less than 2 months, so fast, silent, and smooth. A week before the deal agreement, I heard that Elnusa would be bought by Solo-born businessman. 

A market rumor said Houston Jusuf and Heru Hidayat are key persons behind the deal. But, both confirmed that they don't have any shares participation in Benakat. A source said Benakat is majority owned by businessman dubbed with an initial WM. 

Saratoga Capital, founded by famed Sandiaga Uno & Edwin Soeryadjaya, and Patrick Walujo's owned Northstar Pacific Partners were failure to close deal after eight months in tough talk.

Friendly terms and conditions

A source close to the deal said Benakat, that is owned PT Indotambang Perkasa, former minority share holder of PT Darma Henwa Tbk (DEWA), provided more friendly terms and conditions to TDE, while Saratoga & Northstar offered more tough conditions in relation to Elnusa shares pledge to TDE creditor Singapore-based Dharma Investments Pte Ltd.

"Benakat gives commitment to TDE to help releasing Elnusa shares pledge from Dharma Investments, while Saratoga left TDE alone to solve the stumbling block," the source said to Insider Stories.

Benakat's statement to IDX disclosed that four conditions must be fulfilled by both Benakat and TDE in order to close the deal.

The deal should obtain agreement from share holders general meeting of TDE as well as its creditors. The share sale must be agreed by syndicated banks and Benakat's share holders meeting if it uses IPO proceeds.

From those conditions, agreement from creditors and syndicated banks are more complicated. If TDE fails to seal the agreement, it won't enable to close the acquisition deal.

Dharma Investments is one of TDE creditors that hold 37.15% stakes in Elnusa. TDE pledged those shares to Dharma Investment on September 16 2008.

The biggest stumbling block for the deal remains shares pledge. If Benakat commits to help TDE to release the pledge, Benakat should provide more cash for the transaction.

Before pledging Elnusa to Dharma Investments, TDE put those shares as collateral to PT Danareksa (Persero) that is now run by Edgar Ekaputra. Danareksa is a parent company of brokerage PT Danareksa Sekuritas.

Danareksa provided loan facility worth US$11.94 million and US$45.80 million to TDE. But, TDE failed to pay the loan. As of August 12 2008, TDE total debt to Danareksa estimated US$52.72 million and converted into rupiah equaled to Rp416.47 billion.

Adding to that, TDE provided pledge rights on 210.01 million Elnusa shares and 62.57 million shares in PT Margaraya Jawa Tol to Danareksa. Danareksa has reached an agreement with TDE to settle the debt.   

Indosat appoints 5 bond underwriters

Indonesia second largest operator cellular PT Indosat Tbk (ISAT) has mandated Citi, DBS Vickers, Deutsche Bank, HSBC, and RBS as lead underwriter and arranger US$750 million bond that will be unveiled during first half this year.

"Five foreign investment banks obtained a formal notification from Indosat by email or fax last night," a source familiar with the matter said to Insider Stories today.

Indosat, which booked 33.1 million subscribers last year, will use proceed from dollar denominated bond to bankroll capital expenditure and refinance debt due in October and November 2010.

The source said Indosat, that is majority controlled by Qatar Tekecom, is planning to set an aggressive expansion in a bid to maintain its second largest position in the cellular industry.

Some foreign investment banks involved a beauty contest such as Barclays Capital, Citi, Credit Suisse, Deutsche Bank, ING, HSBC, JP Morgan Securities, Nomura Securities, RBS, dan Standard Chartered Bank.

"We got confirmation from Qatar Telecom that we are in black-out period. This is why we will announce it in early march," said Indosat President Director Harry Sasongko Tirtotjondro to Insider Stories.

BNBR loses 15.1% stakes in Energi

An investment parent company PT Bakrie & Brothers (BNBR) has lost 15.1% stakes in its oil and gas subsidiary PT Energi Mega Persada Tbk (ENRG) during rights issue.

Energi Mega, which issued 26.18 billion new shares and 4.9 billion warrants, is now 28.12% controlled by Bakrie & Brothers, reducing from the last position at the end of September 2009 of 43.22% stakes or 6.22 billion shares.

During the second rights issue, providing a fresh capital of Rp4.84 trillion for Energi Mega, the parent firm subscribed only 4.9 billion shares worth Rp912 billion.

After such issuing new shares with preemptive rights, public holders control 70.42% stakes, Bakrie & Brothers own 28.12%, and two standby buyers, PT Danatama Makmur that is run by Houston Jusuf and PT Madani Securities, hold 1.45%.

Energi Mega issued new shares with 20 preemptive rights for each 11 of share holders. Each right was available to exercise one new share. For those who exercise 16 rights obtained three warrants.

Two days ago, Danatama offloaded 7.30 billion new shares of Energi Mega into the market at Rp185 per share, grabbing Rp1.37 trillion.

Moody's affirms Chandra Asri rating

Moody's Investors Service has today affirmed its B2 corporate family rating for PT Chandra Asri and the B2 senior secured rating on the US$230 million 5-year notes issued by Altus Capital Pte Ltd, an entity wholly owned by and whose bonds are also guaranteed by Chandra Asri and PT Styrindo Mono Indonesia (SMI). 

These ratings have been removed from their provisional status following the completion of the bond issuance. 

The outlook on both ratings is stable. US$157 million of the bond proceeds will be used to refinance outstanding debt under an existing bank facility, while the remainder will be used to repay an existing subordinated loan from Strategic Investment Holdings Ltd, a previous shareholder of Chandra Asri.

Standard & Poor Ratings Services (S&P) said today that it had affirmed its B+ long-term corporate credit rating on Indonesia-based Chandra Asri, a company owned by PT Barito Pacific Tbk which is controlled by Indonesian tycoon Prajogo Pangestu. 

The outlook is stable. At the same time, the rating agency affirmed  B+ foreign-currency issue rating on the proposed senior secured notes to be issued by Altus Capital Pte. Ltd. and guaranteed by Chandra Asri. These notes, originally scheduled for launch in the fourth quarter of 2009, were postponed because of the market conditions prevailing at the time.

CP Prima standstill is effective

PT Central Proteinaprima Tbk (CP Prima) finally obtains more than 50% agreement from bond holders in a bid to make standstill agreement effective.

In a public announcement to Indonesia Stock Exchange today, the standstill will take place until in the next six months. 

Under such agreement, bond holders of Blue Ocean Resources, 100% subsidiary owned by CP Prima, are not allowed to execute bond collateral. Bond holders are forbidden to submit bankruptcy to the court.  CP Prima has intention to hold bond restructuring with their holders.

Blue Ocean failed to pay the US$17.875 million semi-annual coupon on the notes on 27 January 2010. 

The company continues to face tight liquidity primarily on the back of a virus contamination in its shrimp ponds. CP Prima is currently in the process of executing a 6 months standstill agreement with the noteholders.

Centrin gets Rp1.23 bio from unit sale

PT Centrin Online Tbk has disposed 5.58% stakes in PT Centrin Multi Media (CMM) worth Rp1.23 billion to PT Ekasada Intisolusi.

Centrin Online Corporate Secretary Janti Kosasih, in a public statement to Indonesia Stock Exchange, said Centrin Online sold 11.50 million shares at a nominal price of Rp100, dragging down its ownership from 25% to 19.42%. Centrin Online hasn't disclosed use of the proceed from the share sale.

BTN names 3 bond underwriters

A just listed state-owned bank focusing on housing credit PT Bank Tabungan Negara Tbk (BTN) has appointed three joint lead underwriters in a bid to help arranging and issuing rupiah denominated bond.

BTN Finance Director Saut Pardede said the bank has determined to designate PT Mandiri Sekuritas, PT Indopremier Securities, and PT Bahana Securities.

"We are pondering to issue 10 years Rp1.5 trillion-Rp2 trillion of bond by the end of April," he said.

Adding to that, BTN will come out with assets backed securities (ABS) in the second half, fleeing from crowded market.

BTN is now eyeing net profit growth by 50% this year, putting credit expansion as a main booster after it listed and offloaded shares into the stock market that created Rp1.9 trillion capital additional.

The bank is optimistic to reach 50% growth due to rising expansion above bank industry average of 26.5%.

In order to jack-up low cost deposit, BTN is planning to add 100 more counters in rural areas. Saving deposit dominates 60% the bank's total third party money.

What a frenzy Indosat bond underwriters

Indonesia second largest cellular operator PT Indosat Tbk (ISAT) has mandated five foreign investment banks to help arranging dollar denominated bonds worth at least of US$750 million.

The proceed will be used by the operator to bankroll capital expenditure and debt refinancing this year. 

"Five [underwriters that will help Indosat's bond issue]. In one or two days, we will formally announce," Presiden Direktur Indosat Harry Sasongko Tirtotjondro said to Insider Stories today.

In a beauty contest, Indosat invited more than 10 foreign banks. Some of them were Barclays Capital, Citi, Credit Suisse, Deutsche Bank, Hongkong and Shanghai Bank, ING, JP Morgan Securities, Nomura Securities, RBS, and Standard Chartered Bank.

A source familiar with the matter said Indosat is estimated to appoint Citi, Deutsche Bank, HSBC, ING, and RBS. "No one is affordable for comment. It is very strict," the source said. But, some said that DBS may be possible appointed by Indosat to help bond issue as well.

ING and RBS have chance to grab the mandate because ING is close to Indosat, while RBS has a good relationship with Qatar Telecom.

Indosat, in a research report published by Danareksa Sekuritas on January 22, needs capital expenditure of US$600 million-US$700 million this year.

The company also must refinance bonds due in October and November worth Rp640 billion and US$234.75 million or Rp2.84 trillion in total. Adding to that, Indosat needs at least Rp9.28 trillion to support capex and debt refinancing.

As of September 2009, cash and cash equivalent of Indosat reached Rp2.24 trillion, which in return, Rp7.04 trillion is needed to cover Rp9.28 trillion.

In 2009, the company's subscribers reached 33.1 million, beating PT XL Axiata Tbk which posted 31.4 million subscribers.

Investors allocates US$150m for Bakrie

Two strategic investors from Dubai and Abu Dhabi are ready to invest US$100 million-US$150 million fresh capital into infrastructure projects under Bakrie Group.

A source familiar to the matter said the institutional investors have two options. "They can directly inject into infrastructure projects that is run and built by Bakrie subsidiaries and buy shares of PT Bakrie & Brothers Tbk [BNBR]," the source said.

Bakrie & Brothers is pondering a serious interest from Middle East-based investor that is seeking direct investment in infrastructure sector in South East Asia. 

In a press release yesterday, Bakrie, that is controlled by Bakrie family, said the company is in serious discussion with potential Middle East investors. "They show their interest in gas pipe, power plant, and toll road which offer a stable revenue," Bakrie's CFO Eddy Soeparno said.

The source said Bakrie expects to reach agreement with those investors in the next three months.

Bakrie & Brothers has also mandated  Credit Suisse and Nomura Securities to arrange and manage equity linked notes  issue worth US$150 million-US$200 million. A source familiar with the matter said Bakrie, which is planning to unveil the notes in February-March this year, will use proceeds to refinance its debts and prop up investment programs. "Bakrie finally decided to appoint Credit Suisse and Nomura to help advising equity linked notes issue," a source said.

Summarecon sets Rp460 bio capex

Kelapa Gading-based PT Summarecon Agung Tbk (SMRA) has set Rp460 billion for capital expenditure (capex) this year.

In a research report published by PT Danareksa Sekuritas on February 15, the capex is used to bankroll completion of Harris Hotel worth Rp150 billion, Rp80 billion is utilized to build an office tower in Kelapa Gading, a flyover valued Rp80 billion, and development of Mall Serpong phase 2 worth Rp150 billion. 

The source of capex shall be internal cash and equity (Rp247 billion of warrants to be exercised by June 2010). 

If this is not sufficient, there is always the option of bank financing. With gross gearing of only 72% (net gearing 46%) SMRA should comfortably be able to take on more loans. If it does, the cost should not be too high either

According to Summarecon's management, it has already been offered a loan at 10.5% interest. Strong pre

sales should also boost SMRA’s cash. The company is estimated to post Rp1.3 trillion in revenue and Rp163 billion in net profit last year.

The recent acquisition of 100 hectares of landbank in Serpong has been an astute move. "We believe, it will
boost SMRA's NAV by 133% to Rp5.7 trillion (assuming 10%-15% annual land price increases since
2007)," Danareksa'a analyst Lydia Suwandi wrote in her report.

Through joint operations with PT Telaga Gading Serpong, Spring will be launched, a project
that will give Summarecon a 55% share of the total revenues generated. Based on her research, she believes that Bekasi development is the next Kelapa Gading for SMRA 

CIMB Niaga to issue US$100 mio bond

PT Bank CIMB Niaga (BNGA) is planning to unveil US$100 million of global bond in the first half this year.

Bank Niaga's President Director Arwin Rasjid said the fund will be used to refinance its debt worth US$150 million due this year.

"We are considering to launch another US$200 million bond next year in a bid to bankroll credit expansion," he said.

Bakrie in talks with Middle East investor

Investment parent company PT Bakrie & Brothers Tbk (BNBR) is pondering a serious interest from Middle East-based investor that is seeking direct investment in infrastructure sector in South East Asia.

In a press release today, Bakrie, that is controlled by Bakrie family, said the company is in serious discussion with potential Middle East investors. "They show their interest in gas pipe, power plant, and toll road which offer a stable revenue," Bakrie's CFO Eddy Soeparno said. 

Bakrie & Brothers has mandated  Credit Suisse and Nomura Securities to arrange and manage equity linked notes  issue worth US$150 million-US$200 million. 

 A source familiar with the matter said Bakrie, which is planning to unveil the notes in February-March this year, will use proceeds to refinance its debts and prop up investment programs. "Bakrie finally decided to appoint Credit Suisse and Nomura to help advising equity linked notes issue," a source said. 

Bakrie Finance Director Eddy Soeparno confirmed the appointment of both lead arrangers for the notes. According to him, the company will combine both convertible and exchangeable bonds, allowing it to settle in cash. Bakrie may use shares of PT Bakrie Sumatera Plantations Tbk (UNSP) to support exchangeable bonds.

Danatama offloads 7.4 bio ENRG

PT Danatama Makmur, a local brokerage run by Houston Jusuf who is close to Bakrie family, today offloaded 7.39 billion new shares of oil and gas producer PT Energi Mega Persada Tbk (ENRG) into the market at Rp185 per share, totaling Rp1.37 trillion.

Following the market placement, Danatama crossed Energi Mega shares into the market today. Shares placement counts 28.22% of total new shares issued by ENRG.

In a rights issue prospectus, Energi Mega issued 26.18 billion of new shares at Rp185 per share with two standby buyers Danatama and PT Madani Securities.

Based on underwriting agreement, Danatama committed to subscribe 17.11 billion shares, 65.35% of the total shares issued, while Madani was in commitment to buy 4.04 billion shares or 15.43%.

PT Bakrie & Brothers Tbk (BNBR), an investment holding controlled by Bakrie family, also agreed to subscribe 4.93 billion shares or 18.83% of the total.

Vice President of Danatama Investment Bank Vicky Gandasaputra confirmed that Danatama closed a 7.4 billion new shares of market placement today at Rp185.

"We place Energi Mega new shares which we obtained from standby buyer commitment for rights issue," he said.

He said that Danatama sold those shares to investors in Europe, America, and Hong Kong. "I don't know exactly their name due to collecting placement data."

Bakrie & Brothers, he said, also subscribed Rp912 billion during Energi Mega's rights issue as well.

Trikomsel may issue Rp400 bio bond

Cellular distributor PT Trikomsel Oke Tbk (TRIO) is pondering to issue Rp400 billion bond in a bid to bankroll operational financing.

"The company may issue Rp400 billion bond," said Trikomsel Corporate Secretary Juliana Samudro as reported by Kontan daily today. But, she didn't want to explain the debt issue due to depend on bond market condition.

TRIO sets Rp50 billion in capital expenditure this year, which will be financed by initial public offering proceeds.

As of September last year, the company made Rp4.09 trillion of revenue, a slight declined compared to the same period in 2008 of Rp4.14 trillion.

But, it posted a higher operating profit of Rp206.04 billion during January-September last year from a year before of Rp154.51 billion due to a lower cost of goods sold. Net profit rose to Rp90.81 billion as of September 2009 from a year before of Rp88.62 billion.

PT Delta Sarana Pradana controls 87.31% shares in Trikomsel, Kindarto Kohar owns 1.29%, and founder Sugiyono Wiyono owns 1.29%, while the remaining shares go to public shareholders.

Benakat, Dewa, and Indotambang

An oil and gas producer PT Benakat Petroleum Energy Tbk (BIPI) last week listed shares into Indonesia Stock Exchange. During the first trading debut, BIPI jumped 67%.  

At the same day, the company  also announced that it reached acquisition deal of 37.15% shares of an integrated oil and gas services company PT Elnusa Tbk (ELSA) with PT Tri Daya Esta (TDE) that is owned by Indonesian tycoon Anton Sugiono.

A source said Houston Jusuf, who runs PT Danatama Makmur as lead underwriter for BIPI's initial public offering, and Heru Hidayat, owner of Inti Kapuas Arowana, are key persons behind Benakat and Elnusa's acquisition deal.

Who are really Houston and Heru Hidayat? and Why did they involve in Benakat and Elnusa negotiations? 

Some sources in the capital market said Benakat is majority owned by Houston Jusuf, while Heru Hidayat is owned the remaining. 

But, both Houston and Heru have confirmed that they don't have any participating interest in Benakat. So, who is ultimate share holder in Benakat?

According to Benakat's IPO prospectus, the company is majority controlled by PT Indotambang Perkasa of 45.69%, PT Inti Permata Nusantara 5.1%, and public owns the remaining shares or 31.44%.

I browsed into the internet to find out who is key persons behind Indotambang Perkasa. But, zero result I got. No single documents were available to explain who is Indotambang Perkasa and what is the company's main business. It even doesn't has any affordable website.

The only relations come out is Indotambang Perkasa is also owned minority stakes in PT Darma Henwa Tbk, (DEWA), coal mining contractor that is controlled by Zurrich Asset International, British Virgin Islands (BVI)-based company which is around 40% owned by PT Bumi Resources Investment, 100% subsidiary of PT Bumi Resources Tbk.

Pursuant to DEWA's 2007 financial report, Indotambang Perkasa owned 3.95% stakes in Darma Henwa. But, in 2006, DEWA was 95% owned by Zurrich Asset International Ltd and 5% owned by PT Indotambang Makmur.

The report said that Indotambang Makmur in May 2007 handed over its stakes in DEWA to Indotambang Perkasa. As of September 2008, Indotambang Perkasa remained 3.93% staked owner in DEWA.

But, as of September 2009, Indotambang banished from Darma Henwa's ownership structure, replaced by Goldwave Capital Limited (qq Zurich Asset International). 
Elnusa acquisition

A source said that Benakat wins battle against Saratoga Capital and Northstar Pacific Partners consortium due to win win term and conditions offered by Benakat.

"Benakat is able to replace predecessor due to it doesn't push TDE to guarantee that Benakat could get majority stakes in Elnusa," the source said.

With the price offer of Rp330 per share or Rp894 billion in total, below Saratoga's price consideration, TDE prefers to reach agreement with Benakat rather than Saratoga Capital.

 

 

Adhi grabs Rp455 bio new project

State-owned contractor PT Adhi Karya Tbk (ADHI) grabbed Rp455.49 billion new project named Mangkuluhur Office Tower that is owned by PT Wisma Pumayudha Putra.

In a public statement to Indonesia Stock Exchange end of last week, ADHI, which will run the project in 21 months, should provide structure, architecture, design, and build for three basements and 30 floors office tower.

As of September 2009, the company booked Rp4.86 trillion in revenue, grew from the same period in 2008 of Rp3.66 trillion.

But, operating profit fell from Rp153.59 billion at the end of September 2008 to Rp129.45 billion last year. ADHI's bottom line rose from Rp52.16 billion to Rp64.15 billion as of September last year due to a lower non operational charges. The company gained Rp44.39 billion in other income from fixed assets sale at the end of third quarter 2009. 

Danatama offloads 8.35 b shares BIPI

PT Danatama Makmur, lead underwriter of IPO PT Benakat Petroleum Energy Tbk (BIPI), offloaded 8.35 billion shares in BIPI into the market during the first debut trading.

Based on Indonesia Stock Exchange data, as of February 11, Danatama, local brokerage run by Houston Jusuf who is close to Bakrie family, previously held 11.22 billion shares or 97.61% in oil and gas producer Benakat Petroleum. After the transaction, Danatama's ownership in BIPI decreased to 2.87 billion shares or 25.01% stakes.     

In line with shares offload, four Seychelles-based companies bought BIPI shares as well as one British Virgin Islands-based firm (BVI).

A Seychelles-founded company dubbed Limburg GmbH grabbed 1 billion shares or 8.75% of Benakat Petroleum. 1 St Financial Company Limited bought 1.29 billion shares or 11.25% shares of BIPI, while Ace Business Ltd and Sevila Services SA collected 1.15 billion shares or 10% and 862.5 million shares or 7.50% stakes in BIPI respectively.
A BVI company named Suisse Charter Investment Ltd also bought 1.44 billion shares or 12.50%, while a local-based firm dubbed PT Mentari Bersahabat Indonesia collected 575 million shares or 5%.

Benakat decided the IPO price is Rp140 per share, allowing it to grab Rp1.6 trillion of fresh money from the capital market.

Oil and gas producer issued 11.50 billion shares into the market. The proceed will be used to invest in its subsidiaries PT Benakat Oil and PT Benakat Mining, while the remaining will be utilized to buy shares and notes of Patina Group Ltd. Along with the IPO, Benakat also plans to issue 6.50 billions warrants with the ratio 1:1.

Asia Breweries offers to buy MLBI

A new controlling share holder Asia Pacific Breweries Ltd is offering to buy the remaining public shares of PT Multi Bintang Indonesia Tbk (MLBI) at Rp161,741 per share.

According to the announcement today, during the offer, Asia Breweries will initiate to buy Multi Bintang shares on March 5 until April 1 2010.

Asia Breweries, Singapore-based company producing Tiger, continues to buy the public shares via tender offer as a result of 65.1% acquisition on Multi Bintang.

The buyer has signed share purchase agreement with Heineken International B.V. to acquire 13.72 million shares in Multi Bintang worth Rp2.33 trillion or Rp161,741 per share on December 7 2009. The acquisition was closed on February 10 2010, which in return allowing Asia Breweries to control Multi Bintang. 

BCIP considers to develop coal terminal

A property developer PT Bumi Citra Permai Tbk (BCIP) in early 2010 disposed 13 hectares of land to PT Electric Stanley Indonesia, an electric spare part distributor for Astra, Honda, and Suzuki, worth Rp65 billion.

The sale proceed will be used by Bumi Permai to bankroll its expansion in Bojonegara, Banten, West Java.

According to the developer's initial survey, Bumi Permai has intention to develop coal terminal facility in Bojonegara.

"We are considering to set up alliance with a Chinese company in a bid to invest in 125 MW power plant at Millennium industrial area," Bumi Permai's Operating and Planning Director Rudi Wijaya said in a public statement to Indonesia Stock Exchange yesterday.

Referring to the company's performance, during the first quarter this year, Bumi Permai estimates to post Rp60 billion in sales, counting 60% of its initial target Rp00 billion. 

He said the company has obtained orders to buy land space from overseas invetsors in Millennium industrial area which is owned by Bumi Permai. "Investor from Taiwan moving in Nike shoes production has ordered 15 hectares of land space in Millennium industrial area," he said.

Berlian Tanker closes US$100 mio CB

PT Berlian Laju Tanker Tbk (BLTA) closed 12% US$100 million guaranteed convertible bonds (CB) due in 2015 on February 10 2010.
Speaking in a public statement to Indonesia Stock Exchange today, the company, which mandated J.P.Morgan and RS Platou Markets AS as a joint placement agents, sold the CB via private placement. 

The CB proceeds will be utilized by Berlian Tanker to prop up investment during an extensive cabotage trading in Indonesia.
The convertible bonds offering, which allows its holders to execute a put option after 3 years, is scheduled to be accomplished on February 10 2010.
Initial price of the CB is Rp737 and 10% conversion premium above reference share price (closing price on February 2 at Rp670). Berlian Tanker sealed a 7 years new contracts worth US$90 million from Indonesia largest state-owned oil and gas producer PT Pertamina (Persero).
In a public announcement to Indonesia Stock Exchange today, to fulfill the contract, which has firstly been given to Indonesia company, Berlian Tanker has agreed to buy VLGC boat, dubbed Commander N, witha total capacity of 78,543 CBM, built by NKK Corporation Japan.
Following to that, Berlian Tanker will renew the boat identity with Indonesia flagship and register it under Indonesia regulation No.17/2008 covering cabotage.
Berlian Tanker, which was founded in 1981, is one of famed sea transportation specialist company for liquid cargo. The company's fleeds are now consisting of 63 units and 10 under construction chemical tanker, 14 oil tankers, 13 and 4 under construction of gas tankers, and one floating oil storage facility.
As of September 2009, Berlian Tanker posted a steep fall in net profit from US$188.01 million to US$6.05 million due to a soaring other charges.

The company's revenue plunged from US$546.07 million as of third quarter 2008 to US$450.62 million at the same period last year. In return, its operating profit tumbled from US$154.36 million to US$85.10 million last year.

Berlian Tanker also suffered a rise of change in fair value of convertible bond and notes payable to US$119.25 million as of September last year.

Bumi Serpong 'cold' placement

A property arm of Sinarmas Group, PT Bumi Serpong Damai Tbk (BSDE), is seems to be satisfied with its market liqidity.

After rolling out road shows overseas, arranged by Macquarie Securities, the developer should find another way to attract potential investors.

"I heard after frenzy road shows, Macquarie has given up with tiny demand, which in result surely to scrap  the private placement," a source close to the matter said to Insider Stories.      

Bumi Serpong keens to offload up to 18,20% stakes or 2 billion shares into the market, following a successful  story of PT AKR Corporindo Tbk (AKRA)'s market placement.

"Book building should be scheduled late evening yesteday. But, considering a gloomy market, Macquarie and Bumi Serpong determine to delay the sale until next week," the source said.

Assuming BSDE's placement will be done at Rp850 per share, the company's founder will grab Rp1.7 trillion of fresh capital from the market.

BSDE was reported to post 38.2% jump in 2009 net profit to Rp308.7 billion compared to a year before of Rp223.5 billion. 

Net margin skyrocketed from 16.1% in 2008 to 24.3% last year. The company enabled to slash cost of goods sold and operation cost during January to December last year. In return, operating profit rose 10.8% from Rp412 billion in 2008 to Rp456.5 billion.

The company had squeezed others income of about 25% to Rp80.3 billion, which in result soared its bottom line significantly.
Despite positive jump in net profit, Bumi Serpong's 2009 revenue slightly lowered of 8.3% from Rp1.39 trillion to Rp1.27 trillion. Gross profit decreased 1.4% from Rp641.7 billion to Rp632.6 billion last year. But, the developer's gross margin remained intact.
In a daily research published by BNI Securities today, the brokerage says that Bumi Serpong still has promising fundamental performance. It may keep to grow in line with property sector recovery as well as global economic bounce back. Bumi serpong (BSDE) has decided to scrap an extraordinary general meeting (EGM) that was scheduled on February 8 2010.

Debt payment drags down XL cash

Cash and cash equivalents of Indonesia third largest cellular operator, PT XL Axiata Tbk (EXCL), fell 37.08% from Rp1.17 trillion in 2008 to Rp747.96 billion last year, dragged down by debt payments.

The operator still enabled to book Rp1.71 trillion in net profit last year from a 2008's net loss of Rp15.10 billion.

According to EXCL's financial report, the company paid Rp5.21 trillion long term debt and Rp1.01 trillion interest of long term debt to its creditor.

The operator booked 14% growth in revenue to Rp13.9 trillion last year compared to the previous year. EBITDA rose 21% to Rp6.2 trillion last year. EXCL's cellular subscribers recorded 31.4 million last year.

XL's competitor, PT Indosat Tbk (ISAT), GSM-based operator that is controlled by Qatar Telecom, posted 2009 total subscribers of 33.1 million, beating XL.

INCO profit falls 52.57%

PT International Nickel Indonesia Tbk (INCO) suffered from 52.57% drop in net profit last year from 2008's position US$359.32 million to US$170.42 million due to a gloomy revenue

In a public statement to Indonesia Stock Exchange today, the company's 2009 revenue fell 42% from US$1.31 billion in 2008 to US$760.95 billion last year.

In return, INCO's operating profit also tumbled from US$478.26 million in 2008 to US$231.87 million last year.

During the last quarter 2009, the company experienced a net profit plunge to US$60 million from previous quarter of US$75.9 million. EBITDA decreased from third quarter last year of US$128.3 million to US$106.1 million during the last quarter.

Cash and cash equivalent of the company last year rose to US$261.05 million from previous year of US$166.11 million due to a lower tax payment and obtaining loan of US$150 million.

AKR rights issue oversubscribes

PT AKR Corporindo Tbk (AKRA) announces the success of the rights issue II for a capital increase. 

The company obtained subscription for new shares and excess orders for over 733 million shares which is 117% of shares offered.

The company issued 627.66 million new shares and around 99.9% of its shareholders used their rights to subscribe the new shares.

In compliance with the subscription commitments, PT Arthakencana Rayatama, AKRA's majority shareholder has subscribed to all its rights and currently Arthakencana owns 59.67% of the new share capital. 

Arthakencana just placed 420 million existing shares in AKR into the market. In an official statement this afternoon, AKR's President Director Haryanto Adikoesoemo said Arthakencana sold 13.38% of the current issued share capital in AKRA during the placement. The placement was carried out through an overnight bookbuild, managed by CLSA and Bahana Securities. 

Bumi Serpong is on the way

A property arm of Sinarmas Group, PT Bumi Serpong Damai Tbk (BSDE), is on the way to offload up to 18,20% stakes or 2 billion shares into the market, following a successful  story of PT AKR Corporindo Tbk (AKRA)'s market placement.

A source familiar with the matter said Bumi Serpong's placement will be arranged and advised by Macquarie Securities.

"Book building should be scheduled late evening today. But, considering a gloomy market, Macquarie and Bumi Serpong determine to delay the sale until next week," the source told Insider Stories.

Assuming BSDE's placement will be done at Rp850 per share, the company's founder will grab Rp1.7 trillion of fresh capital from the market.

BSDE stock closed 2.30% down to Rp850 to day, sending Rp9.29 trillion market capitalization. Paraga Artamida controls 37% stakes or 4.05 billion shares in Bumi Serpong, while Warner Investments owns 31% stakes or 3.39 billion shares. Serasi Niaga Sakti holds 6%.

Bumi Serpong's Director Hermawan Wijaya said he doesn't acknowledge about the sale. "It is share holders domain and we hasn't needed additional cash," he said.

The company canceled an extraordinary general meeting due to inflexibility of nonpreemptive rights regulation. "We think 1 year locked up after placement won't help trading liquidity. This is why we scrap the meeting."