Rajawali grabs Rp9.8 trio from SMGR

Blue Valley Holdings Pte Ltd, subsidiary of Rajawali Corporation that is controlled by Indonesian tycoon Peter Sondakh, secures total demand of US$1.2 billion from investors in private placement of 23.7% interest in PT Semen Gresik Tbk (SMGR) today.
In return, Blue Valley, which is advised by JPMorgan Securities, has upsized shares sale from 17.43% to 23.7% at Rp7,000 per share. Peter Sondakh grabs Rp9.8 trillion of cash from Semen Gresik shares sale. 
Today Blue Valley has crossed 23.7% stakes or 1.4 billion shares into the market and transferred these shares to investors.

Ciputra group financial performance

PT Ciputra Development Tbk (CTRA) booked Rp136.33 billion of net profit last year, lower than the previous year of Rp202.22 billion.

The company's operating profit also fell from Rp290.99 billion in 2008 to Rp283.84 billion last year. Revenue rose from Rp1.30 trillion in 2008 to Rp1.33 trillion last year.

PT Ciputra Property Tbk (CTRP) posted Rp74.20 billion, a slight drop from the previous year of Rp187.54 billion.

Operating profit increased from Rp99.27 billion in 2008 to Rp111.43 billion last year, while revenue rose from Rp324.58 billion to Rp337.41 billion last year.

PT Ciputra Surya Tbk (CTRS) reported a steep drop of net profit last year from Rp144.33 billion to Rp57.12 billion.

Operating profit plummeted from Rp180.14 billion in 2008 to Rp99.64 billion last year, while revenue slashed from Rp581.17 billion to Rp391.45 billion last year.

DOID suffers Rp160.11 bio net loss

PT Delta Dunia Makmur Tbk (DOID) today finally reports 2009 financial performance. Parent company of PT Bukit Makmur Mandiri Utama (BUMA) suffered Rp160.11 billion of net loss last year, ballooning 1,527% from the previous year of Rp9.84 billion of net loss.

In a public announcement today, Delta Makmur's operating profit elevated 26,703% from Rp4.61 billion in 2008 to Rp1.24 trillion last year as a result of acquisition of majority interest of Indonesia's second largest coal mining contractor BUMA last year.Revenue soared 66,190% from Rp9.58 billion in 2008 to Rp6.35 trillion last year.

As of September last year, BUMA posted Rp3.79 trillion of net revenue and Rp704 billion of net profit, growing 20.6% and 67% respectively compared to the same period in 2008. 

Coal production slightly rose 2.7% to 23.1 million tons by the end of September last year compared to the same period 2008, while overburden removal grew 24% YoY to 206.3 million bank cubic meter. Debt to equity ratio steeply feel from 1.9x to 1x while net cash flow remained intact.    

Charoen reports 535% jump on profit

Indonesia poultry company PT Charoen Pokphand Indonesia Tbk (CPIN) made a steep jump of net profit last year due to foreign exchange and higher operating profit.

In a public statement today, Charoen posted Rp1.61 trillion last year, a 535% jump compared a year before of Rp252.97 billion.

The company gained foreign exchange of Rp229.44 billion last year, a reversal from the previous year's forex loss of Rp372.01 billion.

Operating profit ballooned 114.49% from Rp958.93 billion in 2008 to Rp2.06 trillion last year. In line with that, Charoen revenue rose 9.39% from Rp13.31 trillion in 2008 to Rp14.56 trillion last year.

Recapital to buy DOID new shares

PT Delta Dunia Makmur Tbk (DOID) has signed a non-binding term sheet with the Recapital Investment
Group providing DOID to acquire a majority interest in PT Berau Coal Energy (formerly known as PT Risco)
(Berau Energy) and for Recapital, the 100% shareholder of Berau Energy, to swap a majority of its shares in
Berau Energy for a substantial shareholding in DOID.
In a press statement last night, the proposed transaction will create a leading integrated coal platform in Indonesia with multiple strategic and operational benefits for Delta in the contracting business. The transaction will vertically integrate Berau –currently Indonesia's fifth largest coal mining company  with PT Bukit Makmur Mandiri Utama (BUMA), Indonesia second largest coal mining contractor. BUMA is currently Berau's largest contractor and owned by DOID. BUMA is expected to gain bigger market share and longer term contracts from Berau, while Berau is expected to have more consolidated and hence more efficient
operations.
This transaction will be effected by DOID subscription to a mandatory exchangeable bond issued by an affiliate of Recapital. The bond will be exchangeable at maturity (expected to be April 2011) into shares of
Berau Energy at the value achieved by Berau Energy in a qualified international IPO. 

Delta Makmur intends to finance its subscription to the bond by issuing approximately Rp10 trillion (or approximately US$1.1 billion) of shares through a rights issue at Rp 1,400 per share (“Rights Issue”). Under the term sheet, Recapital will acquire a substantial interest in DOID through the rights issue and will act as the standby purchaser of the entire rights issue.
The parties intend to work together in close cooperation over the next few weeks to conduct due diligence and negotiate and execute definitive documentation relating to the bond. The definitive terms of the transaction, once finalized, will be communicated to the market and brought to our shareholders for approval.

Adaro bottom line jumps 392,26%

Coal mining producer PT Adaro Energy Tbk (ADRO) posted a soaring net profit last year on the back of higher revenue.

In a public statement today, Adaro reported Rp4.37 trillion last year, 392.26% jump compared to the previous year of Rp887.19 billion.

Operating income steeply rose 135.87% from Rp4.21 trillion as of December 2008 to Rp9.93 trillion last year. In result, operating margin skyrocketed from 23.27% in 2008 to 36.86% last year. Adaro revenue grew 48.92% from Rp18.09 trillion in 2008 to Rp26.94 trillion last year.

DOID rights issue at Rp1,400

PT Delta Dunia Makmur Tbk (DOID), parent company of Indonesia second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), finally decided to hold rights issue at Rp1,400 per share, the same level of last year private placement.

A source familiar with the matter said Delta Makmur will enable to grab around Rp10 trillion from rights issue. 

100 Existing shares will have rights to buy 105 of news shares which will be issued by Delta Makmur. "DOID will announce rights issue more detail in 1 or 2 days," the source said.

Delta Makmur management tonight has also signed non binding term sheet with PT Recapital Advisors, controlling share holder of PT Berau Coal via PT Bukit Mutiara and PT Risco, previously controlled by Rizal Risjad, son of conglomerate Ibrahim Risjad.

Risco, which will transform into PT Berau Energy, will enroll the capital market by offering 20%-30% shares with IPO target of US$200 million-US$300 million in June 2010. 

Under non binding agreement, Delta Makmur will use proceed of rights issue to buy exchangeable bond which will be issued by Bukit Mutiara. 

"Delta Makmur will convert the bond into Berau Energy shares during IPO. Conversion price will be transparent and fair," the source said.

DOID Corporate Secretary Andre Soelistyo declined to comment about rights issue at Rp1,400 per share. Northstar Pacific controls 40% stakes in DOID via Northstar Tambang Persada. 

Multistrada profit soars 5,787.54%

Indonesia tire manufacturer PT Multistrada Arah Sarana Tbk (MASA) posted a 5,787.54% jump of net profit last year compared to the previous year.

The company booked Rp174.86 billion of net profit last year from a year before of Rp2.97 billion as a result of higher sales and foreign exchange gain of Rp86.44 billion.

Operating profit rose 30.84% from Rp176.41 billion in 2008 to Rp230.82 billion last year. In line with soaring operating profit, Multistrada's sales elevated 27.07% from Rp1.33 trillion to Rp1.69 trillion last year.

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.

Rajawali gains Rp5.2 t on SMGR sale

Indonesia conglomerate Peter Sondakh will gain Rp5.2 trillion from sale of up to 19.9% interest in Indonesia largest cement maket PT Semen Gresik Tbk (SMGR) in less than 4 years.

Blue Valley Holdings Pte Ltd, subsidiary of Rajawali Corporation, is starting book building tonight and scheduled to end the sale transaction tomorrow.

Rajawali will offer 17.43% stakes or 1.04 billion shares in Semen Gresik via private placement. JPMorgan is sole book runner of the private placement. Rajawali offers Semen Gresik at Rp7,000 per share, a 6% discount from today's market closing of Rp7,450 per share. Rajawali will grab around Rp8.26 trillion from 19.9% sale. In May 2006, Rajawali bought 24.9% stakes of SMGR from Cemex Holdings.

According the sale structure, when JPMorgan gets strong deman, Rajawali enables to upsize the sale up to 19,9% shares, leaving 5% stakes.

Danareksa upgrades GJTL to Rp1,100

Danareksa Sekuritas today announces that the local brokerage has upgraded earning per share (EPS) 2010-2011 of Indonesia largest tire manufacturer PT Gajah Tunggal Tbk (GJTL) by 29%-22% on the back of higher gross margin.

In a daily notes published today, Danareksa jacks up target price of Gajah Tunggal stocks to Rp1,090 per share, implying 6.46x-5.4x price to earning ratio and 1.18x-0.97x price to book value with buy recommendation.  

In line with growing tire local market, compound annual growth rate of Gajah Tunggal in 2010-2011 is estimated to grow by 17.2% 

"We have also upgraded GJTL gross margin by 17% in 2010, which is supported by higher sales margin," Danareksa notes said.

Along with the company's plan to add more sales through 12 outlets Carrefour and 31 Tire Zone, Danareksa has increased sales volume estimates of radial tire by 15.2% this year and ordinary tire by 4.8%. GJTL now is traded at Rp720 per share, flat from the opening level.

Bakrie Telecom profit falls 28.05%

CDMA-based cellular operator PT Bakrie Telecom Tbk (BTEL) suffered net profit fall by 28.05% last year due to lower operating profit on the back of soaring operating expenses.

Bakrie Telecom, which is controlled by PT Bakrie & Brothers Tbk (BNBR), posted Rp98.44 billion or Rp3.46 per share of net profit in 2009 from the previous year of Rp136.81 billion or Rp5.19 per share.

Operating profit fell 23.83% from Rp378.63 billion as of December 2008 to Rp288.42 billion last year. But, sales grew 24.55% from Rp2.20 trillion to Rp2.74 trillion last year. 

ITMG aims to grab US$1.6 bio sales

Coal mining company PT Indo Tambangraya Megah Tbk (ITMG) is eying US$1.61 billion of sales this year, which will be in line with sales volume target of 23 million tons.

Indo Tambang's President Director Somyot Ruchirawat said the company will jack up sales volume by 1.6 million tons of coal this year from last year of 21.4 million tons. Average selling price in 2010 is estimated of around US$65-US$70 per ton.

Assuming Indo Tambang could reach average selling price this year, the company will post US$1.61 billion of sales.

ITMG Finance Director Edward Manurung said from the sales target this year, PT Indominco Mandiri is estimated to provide 13.2 million tons of coal this year from last year of 12.4 million tons, PT Trubaindo Coal Mining will contribute 6 million tons, PT Joron Barutama Greston will provide 2 million tons, and PT Kitadin Embalut will make 1.6 million tons.

Indika Energy profit falls on forex loss

Parent company of coal mining PT Kideco Jaya Agung, PT Indika Energy Tbk (INDY), reported lower net profit last year due to foreign exchange loss and impairment loss on intangible asset.

Indika, in a public statement today, booked Rp725.67 billion of net profit last year, a 33.10 drop compared to the previous year of Rp1.08 trillion.

The company suffered foreign exchange loss of Rp245.33 billion in 2009, a reversal from the previous year which posted foreign exchange gain of Rp194.84 billion.

But, in the operational level, Indika's operating profit rose 55.39% from Rp123.22 billion to Rp191.48 billion last year. Operating margin increased from 5.32% in 2008 to 7.7% last year. Sales slightly grew 7.79% from Rp2.31 trillion in 2008 to Rp2.49 trillion last year. Income from associated companies increased from Rp1.02 trillion in 2008 to Rp1.48 trillion.

Indika has invested in 7 companies such as Kideco Jaya Agung (46%), Twinstar Shipping (46%), PT Santan Batubara (50%), PT Cotrans Asia (45%), PT Sea Bridge Shipping (46%), PT Intan Resources (43.4%), and PT Tirta Kencana Cahaya Mandiri (47%).

GGRM margin rises on lower expenses

One of Indonesia largest cigarette producer PT Gudang Garam Tbk (GGRM) reported Rp3.45 trillion or Rp1,796 per share of net profit last year, a 83.51% jump compared to the previous year of Rp1.88 trillion or Rp977 per share as a result of higher sales and lower operating expenses.

In a public statement today, Gudang Garam said the company booked a 64.35% higher of operating profit from Rp3.17 trillion in 2008 to Rp5.21 trillion last year. 

Following to that, operating margin sharply rose from 10.48% in 2008 to 15.80 last year on the back of lower operating expenses from Rp1.99 trillion to Rp1.96 trillion. Sales grew 8.99% from Rp30.25 trillion in 2008 to Rp32.97 trillion last year.

Barito profit jumps, watch QoQ result

PT Barito Pacific Tbk (BRPT) is reported to book Rp547 billion of net profit last year, a 116.09% jump from the previous year of Rp3.39 trillion of net loss. 

A source familiar with the matter said Barito is expected to announce 2009 financial result this evening. But, December 2009 result is estimated lower than September's position.

As of September last year, Barito, a parent company that is controlled by Indonesian tycoon Prajogo Pangestu, recorded Rp560.42 billion of net profit, a 208.42% increase from net loss of Rp 516.92 billion in the same period in 2008. Considering December 2009 result, investor should check fourth quarter performance and question what was going on with Barito.I don't have any certain information what factors dragged down Barito's net profit. (quarter on quarter).  

Kalbe Farma VS Darya-Varia

Two pharmacy companies PT Darya -Varia Laboratoria Tbk (DVLA) and PT Kalbe Farma Tbk (KLBF) reported strong 2009 performance last year. Both companies posted a rise on their net profit.

Kalbe Farma booked a 31.43% jump in net profit last year from Rp706.82 billion or Rp72 per share in 2008 to Rp929 billion or Rp97 per share.

Adding to that, operating profit rose 37.72% from Rp1.14 trillion in 2008 to Rp1.57 trillion last year. Operating margin frew from 14.47% to 17.27% in 2009. Kalbe booked sales of Rp9.09 trillion last year, 15.35% increase from the previous year of Rp7.88 trillion.

It was not as good as Kalbe Farma, Darya-Varia reported a 2.05% rise in net profit last year from Rp70.82 billion or Rp126 per share to Rp72.27 billion or Rp129 per share last year.

Operating profit rose 52.67% from Rp78.16 billion in 2008 to Rp119.93 billion last year, while sales grew 55.26% from Rp548.33 billion in 2008 to Rp851.31 billion last year.

Adhi Karya profit jumps 103.15%

The state-owned construction company PT Adhi Karya Tbk (ADHI) reported a 103.15 jump on net profit last year as a result of growth in operating performance level and lower other expenses.

In public announcement today, Adhi declared to post Rp165.53 billion or Rp94.20 per share of net profit last year from the previous year of Rp81.48 billion or Rp46.04 per share.

The company's other expenses decreased from Rp245.37 billion in 2008 to Rp215.06 billion last year on the back of gain of assets sale worth Rp44.39 billion and foreign exchange gain of Rp9.79 billion.

Operating profit grew 45.91% from Rp367.91 billion in 2008 to Rp536.82 billion as of December 2009. Sales increased 16.11% from Rp6.64 trillion in 2008 to Rp7.71 trillion last year.

DOID drops on unclear rights issue

Stocks of PT Delta Dunia Makmur Tbk (DOID) continues its drop today on the back of unclear of rights issue price. DOID stocks today plunge 10.53% to Rp1,020 per share from the open level of Rp1,130 per share.

A local trader said as long as Delta Makmur management doesn't declare rights issue price, these stocks will be pressured by the market.

"Investors hope that DOID management could announce rights issue price soon, so they can determine their position," the trader said.

After being rumored to have plan of rights issue in recent days, parent company of Indonesia second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), Delta Makmur, is likely to prepare a rights issue in a bid to grab US$1.3 billion or Rp12 trillion of cash from the market.

A source familiar with the matter said Delta Makmur is planning to announce a rights issue option soon, along with initial public offering (IPO) of PT Berau Energy, holding company of fifth largest coal producer PT Berau Coal.  
"Proceed from rights issue may be used by Delta Makmur to buy minority interest of Berau Energy," the source told Insider Stories. Mayority stakes of Berau Energy, that is trying to sell IPO worth  US$300 million, will be bought by Delta Dunia Makmur using rights issue proceeds.
Some said that DOID rights issue will price in Rp1,100 per share, but others said rights issue will be priced in Rp1,400 per share, equal to previous private placement level in 2009.

Truba Jaya sales drops 5.88%

Despite lower sales and operating profit, PT Truba Jaya Engineering, subsidiary of PT Truba Alam Manunggal Tbk (TRUB), posted a slight increase on net profit by 3.70%.

Truba Jaya, that provides services of power plant engineering, procurement, and construction and contributes more than 70% of TRUB consolidated revenue, booked Rp53.14 billion or Rp11.69 per share of net profit in 2009 from a year before of Rp51.24 billion or Rp13.12 billion due to lower other expenses.

Truba reported a 10.85% fall on operating profit from Rp158.59 billion as of December 2008 to Rp141.39 billion last year.

In line with a slight decrease of operating profit, sales fell 5.88% from Rp2.38 trillion in 2008 to Rp2.24 trillion last year.

Elnusa reports robust performance

In line with soaring price by 37.64% in two days last week, PT Elnusa Tbk (ELSA) today reports a 2009 robust performance. Net profit skyrocketed 248.53% last year, while operating profit rose 53.15%.

Elnusa posted Rp466.23 billion or Rp65 per share of net profit last year from the previous year of Rp133.77 billion or Rp19 per share as a result of extraordinary income from subsidiary divestment worth Rp437.83 billion.

But, in operational level, Elnusa, which was acquired by PT Benakat Petroleum Energy Tbk (BIPI), posted a 53.16% jump in operating profit from Rp180.39 billion in 2008 to Rp276.29 billion as a result of sales growth. Elnusa's sales soared 44.09% from Rp2.54 trillion in 2008 to Rp3.66 billion last year. During last Thursday and Friday, Elnusa shares jumped by 37.64% to Rp480 per share, beating price target of Kim Eng Securities of Rp450 per share in the next 12 months.

Closing level on Friday represented market capitalization of Rp3.50 trillion and 6.61 times of price to earning ratio and 1.66 folds of September 2009's book value of Rp288.90 per share, which is still cheap.

Costs cripple Bakrieland margin

Despite a steep drop in both net and operating profit, property developer that is controlled by Bakrie familly via PT Bakrie & Brothers Tbk (BNBR), PT Bakrieland Development Tbk (ELTY), suffered a significant drop on its operating margin last year on the back of higher cost of good sold and operating expenses.

In a public announcement today, Bakrieland reported a 51.39% fall on its net profit from Rp272.09 billion in 2008 to Rp132.26 billion.

Bakrieland's management, led by Hiramsyah S. Thaib argued that lower foreign exchange gain crippled by smaller extraordinary gain from subsidiaries investment were the culprit for the profit decrease.

As of December last year, Bakrieland posted Rp4.06 billion of extraordinary gain, while it booked Rp21.05 billion in 2008. Forex gain sharply dropped from Rp109.78 billion in 2008 to Rp4.55 billion last year.  

Let's exclude foreign exchange gain and extraordinary income! If I exclude both factors above, Bakrieland might post Rp141.26 billion of operating profit in 2008. Still, it was higher than the company's operating profit last year.

Bakrieland suffered a 26.23 plunge in operating profit last year from Rp226.03 billion in 2008 to Rp166.75 billion. Sales made a slight increase by 0.95% from Rp1.05 trillion in 2008 to Rp1.06 trillion last year.

If you check operating margin, Bakrieland made 15.75% of operating margin last year, a steep drop from a year before of 21.45%.

I think this should be more important than 51.39% fall in net profit. Bakrieland should carefully manage its cost. Cost of goods sold last year rose 3.19% last year from Rp543.55 billion to Rp560.91 billion, while operating expenses ballooned 16.58% from Rp284.22 billion to Rp331.35 billion last year.

MDS suffers Rp18.31 bio net loss

PT Matahari Department Store Tbk (MDS), subsidiary company of PT Matahari Putra Prima Tbk (MPPA), still suffered Rp18.31 billion or Rp12 per share of net loss last year, ballooned from net loss of Rp3.70 billion or Rp14 per share in 2008.

MDS, a retailer under Lippo Group which is underway to sold by Riady family to CVC Capital, booked Rp617.42 billion of net sales last year from the previous year of Rp11.40 billion.

As a result of soaring operating expenses and cost of good sold, MDS booked operating loss of Rp20.69 billion last year from previously of Rp5.98 billion of operating profit.

 

Axiata receives 4 folds oversubscribed

As I wrote on March 25 2010, PT XL Axiata Tbk (EXCL) in a press conference today reported 3-4 folds oversubscribed of 1.53 billion shares or 18% stakes private placement into the market, allowing its controlling shareholder XL Axiata Berhad Malaysia seized Rp5.05 trillion.

XL President Director Hasnul Suhaimi said Axiata Berhad determined XL private placement at the highest price, Rp3,300 per share, representing 13.92x P/E 2009. Axiata Berhad offered XL shares at the price range Rp3,000-Rp3,300 per share. Following the sale, Axiata Group may possibly upsize around 153 million of XL shares or 1.8%. From the local market, Axiata Group obtained 2 times oversubscribed of 10% stakes XL Axiata. Goldman Sachs, CIMB Investment Bank, and Mandiri Sekuritas arranged the private placement.

The most profitable cement companies

If you have money and want to invest in stocks of Indonesia three largest cement producer, which stock do you want to pick? PT Semen Gresik Tbk (SMGR), PT Indocement Tunggal Prakarsa Tbk (INTP), or PT Holcim Indonesia Tbk (SMCB)?

If you consider their bottom lines, you may probably put your money in SMCB stocks, due to it posted a 217.39% jump in net profit last year (year on year/YoY). Is SMCB, Indonesia third largest cement maker, really the most profitable company? Let's check operating and net margin.

At glance, I think that investors will put their money in SMCB stocks because a fantastic performance in net profit. But, it could post a steep jump in net profit last year on the back of rupiah appreciation against US dollar. Holcim, the third largest cement manufacturer in the country, booked Rp372.20 billion of foreign exchange gain, a reversal of the previous year with forex loss of Rp532.04 billion. Thanks to forex gain.

What if rupiah depreciated against the US dollar last year? Did Holcim enable to provide a jump on net profit? I don't think so.

In operational level, Holcim reported a 39% increase in operating profit. In return, it enabled jack up operating margin from 18.73% in 2008 to 23.40 last year. Sales grew 11.24% from Rp5.34 trillion in 2008 to Rp5.94 trillion last year.

How about Semen Gresik that always provides around 50% dividend every year?

If you look sales growth, the state-owned enterprise SMGR will be the most growing cement company, despite maximum production capacity. I think Semen Gresik's debottlenecking program has been working since last year.   

Semen Gresik's sales growth last year ranked top with 17.85% jump from Rp12.21 trillion and Rp14.39 trillion last year, which was more important than operating and net profit.

But, I think Semen Gresik should improve cost efficiency. The company's operating margin only rose from 27.52% to 30.16% last year. If SMGR could control the cost, it would post higher operating margin. 

Indocement, that is controlled by Heidelberg Cemen AG Germany, just posted a 8.18% growth in sales last year (YoY), the lowest compared to SMGR and Holcim, from Rp9.78 trillion to Rp10.58 trillion. 

Despite the lowest sales growth, Indocement posted a 50% jump in operating profit from Rp2.46 trillion to Rp3.69 trillion last year, which was the highest compared to Semen Gresik and Holcim.

I estimate that Indocement was success implementing cost reduction program. On the back of higher operating income, INTP's operating margin made a steep increase from 25.15% to 34.88% last year, the highest operating margin. Indocement's net margin elevated from 17.89% in 2008 to 25.99% last year as well.       

SMGR seals US$85 mio from Mandiri

Indonesia largest cement maker PT Semen Gresik Tbk (SMGR) signed non cash loan agreement of L/C and SKBDN with PT Bank Mandiri Tbk (BMRI) for a maximum amount of US$85 million.

In 2009 financial report, Semen Gresik revealed that the facility will be utilized for the purchase of machinery equipments and supporting tools for construction of Tuban IV cement plant.

The avilability period of this facilty, 3 years from January 20 2010 to January 19 2013, is secured by a fiduciary transfer of machinery and supporting tools acquired using this facility.

State-owned cement producer reported a 32.14% growth in net profit from Rp2.52 trillion in 2008 to Rp3.33 trillion last year on the back of higher interest income and other income.

Operating profit rose 28.02% from Rp3.39 trillion in 2008 to Rp4.34 trillion in 2009, while sales increased 17.85% from Rp12.21 trillion in 2008 to Rp14.39 trillion last year.

Unilever net profit rises 26.14%

Consumer products manufacturer PT Unilever Indonesia Tbk (UNVR) reported 26.14% jump in net profit last year compared to the previous year as a result of operating performance robust.

In a public statement to Indonesia Stock Exchange today, Unilever posted Rp3.04 trillion of net profit last year from a year before of Rp2.41 trillion.

Operating income rose 22.74% from Rp3.43 trillion in 2008 to Rp4.21 trillion last year. Sales rose 17.14% from Rp15.58 trillion in 2008 to Rp18.25 trillion last year.
Unilever Indonesia Holding BV controls 85% interest in Unilever Indonesia and the remaining goes to public shareholders. (wiw)

Elnusa records new volume transaction

When I wrote a story about It's time to play for Elnusa on March 7, I combined information of PT Elnusa (ELSA) intact performance, possible corporate action from PT Benakat Petroleum Energy Tbk (BIPI), and soaring trading volume and value. 

The largest ELSA's trading volume in 60 days reached 81.68 million shares.  Elnusa shares value  were Rp27.26 billion as well, the highest level since 60 trading days as, with 1.361 transactions.
Referring to data from Indonesia Stock Exchange yesterday, Elnusa shares reached new record of both volume and value. Around 448.56 million shares of Elunsa were traded yesterday worth Rp172.57 billion in 5,809 times.

In line with ballooning transaction, Elnusa price went up steeply by 19.12% from Rp340 to Rp405 per share.

Kim Eng jacked up Elnusa revenue estimates by 14% and raise target price to Rp450 per share from Rp430.

A source familiar with the matter said Benakat Petroleum, new owner of Elnusa, will continue boosting its shares from current position at 37.15%. Benakat will buy Elnusa shares from the market. "Benakat won't outstrip PT Pertamina, that currently controls 41.7% at Elnusa. But, Benakat can make its level equals to Pertamina."

Elnusa Director said the company's performance last year remained robuts. In result, it is considering to share interim dividend to shareholders.

XL placement may reach Rp3,300

During 3 days book building of 1.53 billion shares or 18% of PT XL Axiata Tbk (EXCL), Indonesia third largest cellular operator, Goldman Sachs, CIMB Investment Bank, and Mandiri Sekuritas have sealed a strong demand from both local and foreign institution investors.

Foreign investment banker said despite strong demand from investors, three private placement arrangers are expected to close the deal with oversubscribe. In return, they can reach the top level of private placement price.  Axiata Group Berhad Malaysia aims to sell XL shares at the price range of Rp3,000-Rp3,300 per share, allowing Axiata shareholder to seal Rp4.59 trillion-Rp5.05 trillion from private placement, that will end tomorrow. The price range is representing 12,66x-13,92x of P/E 2009. 

Citi & DB to arrange LPKR bond

Property developer under Lippo Group that is controlled by Riady family, PT Lippo Karawaci Tbk (LPKR) is planning to unveil US$250 million of bond. The proceed will be used by the company to refinance debt and funding business expansion.

A source familiar with the deal said Lippo Karawaci is expected to mandate two famed foreign investment banks Citigroup and Deutsche Bank as joint lead underwriter of five years denominated bond.

Lippo Karawaci has dollar dominated bond worth US$250 million that has been issued by its subsidiary Lippo Karawaci Finance B.V. The bond, provides an annual coupon of 8.875%, will mature on March 9 2011.

During the first 9 months 2009, Lippo Karawaci posted Rp307.67 billion or Rp17.78 per share of net profit, rose from the previous year of Rp289.87 billion or Rp16.75 per share.

Operating income increased from Rp385.85 billion as of September 2008 to the same period last year of Rp398.84 billion. LPKR's sales rose from Rp1.81 trillion in the third quarter 2008 to Rp1.97 trillion.

Jaya Pari Steel reports profit plunge

Surabaya-based steel manufacturer PT Jaya Pari Steel Tbk (JPRS) suffered a 96.09% plunge in 2009 net profit compared to the previous year on the back of sales drop.

In a public statement to Indonesia Stock Exchange today, JPRS booked Rp1.92 billion of net profit or Rp2.56 per share last year from a year before of Rp49.16 billion.

The company's sales posted a steep fall by 58.66% from Rp732.70 billion in 2008 to Rp302.87 billion. In result, JPRS's operating profit tumbled 79.35% from Rp98.35 billion in 2008 to Rp20.31 billion last year.

Inter Magnificent Fortune Ltd controls 35.70% interest in Jaya Pari Steel, Vihara owns 32.72%, Gwie Gunawan holds 15.53%, and public shareholders own 16.04%.

Gozco secures Rp75 bio loan from BRI

CPO producer PT Gozco Plantations Tbk (GZCO) has sealed Rp75 billion of bank loan from PT Bank Rakyat Indonesia Tbk (BRI) to fulfill Rp300 billion of capital expenditure this year. 

Gozco President Director Tjandra M. Gozali said the company will use some part of capex to build CPO plant worth Rp135 billion and jetty that will need Rp25 billion of investment. 

"The bank loan is 25% of total financing. We will bankroll the remaining with internally generated cash flow. The company will focus on CPO plant and jetty this year," he said as quoted by Bisnis.com today.
As of December 2009, Gozco booked Rp204 billion of net profit, a 270.77% jump compared to the previous year of Rp54.75 billion.

Tjandra Gozali said PT Palmia Sejahtera, Gozco subsidiary, contributed Rp50 billion to the parent consolidated revenue.

Gozco, that secured Rp600 billion loan from Bank Mandiri, use the loan to acquire Palmia Sejahtera last year and paid debt to Bank Negara Indonesia. "We still have Rp200 billion as a stanby loan. "After buying Palmia, Gozco's total land bank is 125,000 hectares from 30,000 hectares.

China Railway gets US$4.8 bio contracts

China Railway Group Limited has secured US$4.8 billion contract of engineering, procurement, and construction (EPC) and operator and maintenance (O&M) from PT Bukit Asam Transpacific Railway.

In a press release today, the contract, signed on March 23 2010, will mandate China Railway to build 307 km of railway with total capacity of 27 million tons of coal and coal jetty.

Bukit Asam Transpacific is a joint venture company between PT Tambang Batubara Bukit Asam Tbk (PTBA), PT Transpacific Railway Infrastructure, and China Railway Engineering Corporation.

Transpacific Infrastructure controls 80% interest in Bukit Asam Raiway, while PTBA and China Railway Group own 10% respectively. China Railway Group is 100% owned by China Railway Engineering Corporation. 

Thelveton Global Asset owns 80% shares at Transpacific Railway. Thelveton, that is controlled by Indonesia tycoon Prajogo Pangestu, bought Transpacific Railway from Coral Moon Resources, PT Handayani Bara Dinamika, and PT Transpacific Investama which is steered by a market player Suganda Setiadi Kurnia.

Railway transportation project, that is intended to transport coal from Banko Tengah mining field, Tanjung Enim, South Sumatra, to Srengsem, Lampung, has obtained a principal agreement from Ministry of Transportation in October 2009.

EPC project worth US$1.3 billion will take place in 4 years since the contract is signed, and O&M valued US$3.5 billion will be in 20 years period.

China Railway will roll out railway infrastructure with 27 million tons of coal and provide guarantee of 25 million tons to Tambang Batubara Bukit Asam. These projects will be bankrolled by equity of 20% and the remaining comes from debt.    

BTEL mandates 3 bond underwriters

CDMA-based cellular operator PT Bakrie Telecom Tbk (BTEL) has mandated three lead underwriters Credit Suisse, Morgan Stanley, and Bank of America-Merrill Lynch to arrange US$250 million of bond issue.

Bakrie Telecom President Director Anindya Bakrie said the company is looking out global debt market in a bid to determine bond issue in April. "If the market in April is quite good, we will enroll the market," he said to Insider Stories today.

According to him, Bakrie Telecom will use the proceed to refinance loan and business expansion.

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.     

Arwana gives Rp900 b contract to CSAP

PT Catur Sentosa Adiprana Tbk (CSAP) has secured contract of ceramic distribution worth Rp900 billion from ceramic producer PT Arwana Citra Mulia Tbk (ARNA).

As reported by Kontan daily today, the contract has increased from the previous agreement of Rp725 billion.

Under contract agreement, Arwana has mandated Catur Sentosa as distributor of 36 million meter square of ceramics per year.

Catur Sentosa will use its retail chains such as Mitra10 Superstore and Express to sell and distribute Arwana's products.

According to CSAP's Finance Director Triana Soenaryo, the company's raw material distributor division is estimated to grow by 14% this year, which in return will contribute 80% of its consolidated revenue. ARNA is now traded at Rp215 per share, up 2.38%, and CSAP is stagnant at Rp88 per share.

Berau Energy to grab US$300 million IPO

PT Berau Energy, parent company of Indonesia fifth largest coal mining PT Berau Coal, is snapping up US$300 million from initial public offering (IPO) of 20%-30% stakes at the end of June or early July.

Rosan P. Roeslani, President Director of PT Recapital Advisors that controls 90% stakes in Berau Energy, said the company has mandated four joint lead underwriters Credit Suisse, CLSA, Danatama Makmur, and Recapital Securities to handle the IPO.

"Berau IPO roadshow will be scheduled in June to Singapore, Hong Kong, London, and New York," Rosan said to Insider Stories today.

Referring to the IPO proceed target, it is below the acquisition price when Recapital Advisors's SPV PT Bukit Mutiara bought 90% interest in Berau holding, PT Risco, from Indonesian tycoon Rizal Risjad worth US$1.48 billion.  

Credit Suisse was the financing arranger for Recapital worth US$600 million, while PT Bumi Resources Tbk (BUMI) provided loan to Bukit Mutiara. In return, BUMI will control a marketing agency of Berau Coal.

In tandem with Berau Energy IPO, PT Delta Dunia Makmur Tbk (DOID) is considering rights issue in a bid to tap Rp12 trillion of cash from the market.

DOID Corporate Secretary Andre Soelistyo said the company doesn't prepare for rights issue. But, other sources said DOID, parent of Indonesia second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), will take part in Berau Energy IPO, using rights issue proceed.

DOID rights issue is on the way

After being rumored to have plan of rights issue in recent days, parent company of Indonesia second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), PT Delta Dunia Makmur Tbk (DOID), is likely to prepare a rights issue in a bid to grab US$1.3 billion or Rp12 trillion of cash from the market.

A source familiar with the matter said Delta Makmur is planning to announce a rights issue option soon, along with initial public offering (IPO) of PT Berau Energy, holding company of fifth largest coal producer PT Berau Coal.  

"Proceed from rights issue may be used by Delta Makmur to buy minority interest of Berau Energy," the source told Insider Stories. Mayority stakes of Berau Energy, that is trying to sell IPO worth  US$300 million, will be bought by Delta Dunia Makmur using rights issue proceeds.

Some said that DOID rights issue will price in Rp1,100 per share, but others said rights issue will be priced in Rp1,400 per share, equal to previous private placement level in 2009.

Rights issue rumor had dragged down DOID shares price during the last 6 days from March 11 to March 22. In total, DOID plunged by 18.25%. But, it revived today by 1.60% to Rp1,270 per share.

During 6 trading days, Bank of America Merrill Lynch recorded Rp53.69 billion of net sell, Bahana Securities posted Rp24.27 billion of net sell, Credit Suisse made Rp22.75 billion, UBS Securities posted Rp21.91 billion of net sell, and CLSA recorded Rp20.70 billion of net sell.

Kim Eng Securities booked net buy of DOID shares worth Rp35,57 billion, JPMorgan posted Rp15.45 billion, Sinarmas Sekuritas posted Rp12.27 billion, ETrading Securities made Rp11.87 billion, and Indo Premier Securities made Rp10.47 billion.

2009 Performance

DOID suffered a consolidated net loss last year on the back of property assets write-off and a tiny contribution of BUMA.
Despite a minimum impact of BUMA consolidation starting on November last year, BUMA's profit last was eroded by cost of bond issue worth US$600 million.
"BUMA didn't make any steep growth in net profit in Q4 compared to Q3 last year," the source said to Insider Stories. Other source said BUMA's bottom line last year was close to Rp1 trillion.
As of September last year, BUMA posted Rp3.79 trillion of net revenue and Rp704 billion of net profit, growing 20.6% and 67% respectively compared to the same period in 2008. 

 Coal production slightly rose 2.7% to 23.1 million tons by the end of September last year compared to the same period 2008, while overburden removal grew 24% YoY to 206.3 million bank cubic meter. Debt to equity ratio steeply feel from 1.9x to 1x while net cash flow remained intact. 

Despite the exit from two contracts, Truba Coal Manunggal and Sebuku in first quarter 2009, BUMA posted 20.6% growth in net revenue as of September 2009 compared to the same period in 2008. BUMA's net profit jumped 67% YoY partly underpinned by Rp206 billion foreign exchange gain compared to Rp800 million loss in September 2008.

Berau Energy to go IPO

PT Berau Energy, parent of Indonesia fifth largest coal mining PT Berau Coal, will enroll the capital market in June by offering 10% shares to public investors.

A source familiar with the matter said Berau Energy is trying to get a cash from initial public offering (IPO).

"Of 20%-30% shares of Berau Energy, PT Delta Dunia Makmur Tbk will buy around 80% during IPO," the source said. PT Danatama Makmur just held a kick off meeting to prepare Berau Energy IPO. 

Berau Energy will present its IPO plan to Indonesia Stock Exchange soon after announcing in April.

Around 90% stakes in Berau Coal's parent company is controlled by PT Bukit Mutiara, a wholly owned subsidiary of PT Recapital Advisors.

Berau Coal's deal is fully funded by combination of debts. The first source of debt coming from  PT Bumi Resources Tbk (BUMI), the largest coal producer under Bakrie Group. 

BUMI has channeled subordinated loan of US$300 million to Bukit Mutiara. BUMI just sold convertible bonds of US$300 million at the end of last month, bearing an annual interest rate of 5% and will due in the next 7 years.

Following BUMI's subordinated loan, Recapital has designated Credit Suisse, the darling creditor and investment bank for Bakrie Group, to arrange another debt facilities of US$600 million.

XL Axiata starts book building

Goldman Sachs, CIMB Investment Bank, dan Mandiri Sekuritas tonight starts a book building of  18% stakes or 1.53 billion shares of PT XL Axiata Tbk (EXCL) private placement until Friday.

A local fund manager said XL Axiata is offering EXCL at Rp3,000-Rp3,500 per share, representing 12,66x-13,92x of P/E 2009. 

Referring to the range, Axiata Berhad may enable to grab Rp4.59 trillion-Rp5.05 trillion from private placement. EXCL shares closed up 0.72% to Rp3,500 per share with market capitalization of Rp29.78 trillion at P/E 14.53x.

Medco issues MTN II US$50 million

After issuing medium term notes I worth US$50 million in February, PT Medco Energi Internasional Tbk (MEDC) today announced MTN II issue worth US$50 million on March 22 2010.

In a public statement to Indonesia Stock Exchange today, Medco mandated PT Bahana Securities, PT OSK Nusadana Securities Indonesia, and PT NISP Sekuritas to arrange MTN II issue.
Medco issued two series of MTN II, A and B series. MTN A series worth US$40 million and mature in 2 years provides 7.25% coupon and B series worth US$10 million and due in 3 years provides 8% a year. According to the statement, Medco will use proceed of MTN II issue to fulfill financing this year.

Indofood doubles profit on forex gain

Indonesia largest instant noodle maker PT Indofood Sukses Makmur Tbk (INDF) enabled to double 2009 net profit by 101.94% from Rp1.03 trillion pr Rp503 per share in 2008 to Rp2.08 trillion or Rp570 per share on the back of foreign exchange gain of Rp731.03 billion.

In a public statement published by First Pacific Company Limited, parent company of Salim Group, today, Indofood suffered sales decrease as of December 2009 compared to the previous year by 4.25% from Rp38.79 trillion in 2008 to Rp37.14 trillion that was mainly due to lower CPO price.

But, the company posted a 15.21% higher of operating profit from Rp4.34 trillion in 2008 to Rp5 trillion last year as a result of decreasing cost of goods sold.

In contrast, CPO producer PT Salim Ivomas Pratama posted a 1% growth in net profit from Rp1 trillion or Rp396.12 per share in 2008 to Rp1.01 trillion or Rp398.58 per share as of December 2009.

Sales plunge 23.65% from Rp11.84 trillion to Rp9,04 trillion last year, dragging down profit from operations by 20.07% from Rp2.89 trillion to Rp2.13 trillion last year.   

BWPT may propose Rp20.2 bio dividend

The most profitable CPO producer publicly listed company PT BW Plantation Tbk (BWPT) is considering to propose 2009 dividend of Rp5 per share or Rp20.2 billion totally to shareholders. The dividend will be 9.87% from BW Plantation's net profit last year of Rp167.47 billion or Rp50.67 per share.

A local fund manager who obtained the information from the market said BW Plantation's management will propose Rp5 per share dividend to annual general meeting scheduled on March 30.

"According to prospectus of initial public offering, BW is committed to provide dividend payout ratio of 10%-30% of annual net profit," the fund manager said. 

BW President Director Abdul Halim Ashari declined to comment. He said the company will stick to the commitment of 10%-30% of dividend payout ratio. "We will propose dividend to annual general shareholder meeting on March 30," he said.

According to a research report published by CLSA Asia-Pacific Markets on March 19, BW Plantation is a well managed company and is one of the fastest growing palm oil plantation companies in Indonesia. 

By the end of 2012, total mature area will double in the current size to 26,000 ha. However, assuming Rp370 billion-Rp550 billion of capital expenditure (capex) for the next 3 years, BW Plantation will be generating negative free cash flows of around Rp50 billion-Rp170 billion per year.

"Thus, we forecast the company to raise fund through debt to sustain expansion and by the end of 2012, net gearing will increase to 33%," Vera Ongyono and Wilianto Ie, CLSA analysts, said in their report.
Abdul Halim said BW Plantation is pondering to raise fund at the end of 2010 or early next year. "We will explore some financing options," he said.

BW Plantations has 96,000 hectares of total land bank. As of December last year, 41,448 hectares had been planted. It sets target to plant in 10,450 hectares this year. "We target around 10% of CPO production increase this year from last year of 91,000 tons," he said. 

In 2010, the company estimates around 15,270 hectares of palm oil plantation will mature, 19,000 hectares in 2011, and 26,000-27,000 hectares in 2012.

Sampoerna Bio acquires National Sago

PT Sampoerna Bio Fuels, subsidiary of CPO producer PT Sampoerna Agro Tbk (SGRO), on February 9 2010 signed acquisition agreement with PT Siak Raya Timber to buy PT National Sago Prima.

Sampoerna Bio will acquire 75.5% stakes in National Sago worth US$6.48 million as well as capital injection of US$5.80 million. In return, Sampoerna Bio will increase its participation in National Sago to 91.85%.
In relation to that, Sampoerna Bio in February provided US$9.20 million of loan to Siak Timber.
Under acquisition agreement, Sampoerna Bio will convert US$5.18 million of Siak Timber's loan into interest participation in National Sago and the remaining of US$4.01 million will be paid after terms and conditions of acquisition agreement fulfilled.

As of December 2009, Sampoerna Agro reported a steep plunge on its net profit by 35.89% from Rp439.52 billion or Rp236 per share in 2008 to Rp281.76 billion or Rp151 per share.

Following gloomy bottom line, operating profit slumped 24.76% from Rp611.46 billion in 2008 to Rp460.04 billion last year. Sales fell 20.52% from Rp2.29 trillion in 2008 to Rp1.82 trillion in 2009. 

Nokian, Hankook Tire in talks with MASA

European-based tire company Nokian Tires Plc and South Korean-founded Hankook Tire, seventh largest tire producer in the world, have been in talks with controlling shareholder of PT Multistrada Arah Sarana Tbk (MASA) for a possible majority shares acquisition deal.

A source familiar with the matter said Nokian Tires and Hankook Tire have shown their interest to participate into Multistrada.

"Talks have been continuing, but Multistrada shareholder wants Nokian and Hankook increase their price offer," the source said to Insider Stories last week.

Indonesia tire producer PT Multistrada Arah Sarana Tbk (MASA) has set a Rp1.5 trillion expansion story until 2013 to jack up production capacity of both car and motorbike tires.
 As of September 2009, Hankook Tire announced an increase in sales of 26.4% YoY at KRW 1.44 trillion along with a skyrocketing in operating profit of 536.4% YoY to KRW 275 billion.

Hankook Tire is one of the world's largest and fastest growing tire manufacturer for radial tires for passenger cars, light trucks (SUVs, RVs, and etc.), trucks, and buses. Through sales in More than 180 countries around the world, Hankook Tire is ranked 7th in global sales revenue. The company makes 70% of revenue through overseas markets. 

Nokian Tyres is the only tyre manufacturer in the world that focuses on customer needs in northern conditions. The company supplies innovative tyres for cars, trucks and special heavy machinery mainly in areas with special challenges on tyre performance: snow, forests and harsh driving conditions in different seasons.  In 2009, Nokian Tyres had roughly 3,300 employees and net sales of EUR 798.5 million. Nokian Tyres’ share is listed on the NASDAQ OMX Helsinki.

The products are mainly sold in replacement markets. The group has own sales companies in Sweden, Norway, Germany, Switzerland, Russia, Ukraine, Kazakhstan, Czech Republic and in the USA.  

Aggressive expansion

Multistrada that sells car tires Achilles, Corsa, and Strada, may possibly use bank loans to underpin the capacity expansions. 

As of September 2009, Multistrada posted Rp1.41 trillion in equity with short term debts of Rp288.24 billion. In return, it still enables to seize Rp2 trillion of additional loan.
According a research report published by PT Pemeringkat Efek Indonesia (Pefindo) on January 15 2010, MASA's expansion program is due to fulfill both export and domestic markets.

The company has talked with CIMB Bank and The Hongkong and Shanghai Bank to obtain bank loans of US$200 million to support expansion until 2013.
In 2009, MASA is estimated to book Rp1.69 trillion of sales and Rp165 billion of net profit, a soaring performance compared the previous year. MASA 2008 sales reached Rp1.33 trillion and Rp2.97 billion of net profit.
Referring to market price today of Rp245 per share, MASA is traded at 9x 2009 price to earning ratio and 1.17x of book value. PVP XVIII Pte Ltd Singapore controls 27.7% shares and Prudent Capital Ltd Malaysia own 14.9% shares in Multistrada.

Antam reports 56% drop in net profit

PT Aneka Tambang Tbk (Antam) reported 2009 sales dropped 9% year on year to Rp8.71 trillion, while net profit plunged 56% year on year to Rp604 billion or Rp63.5 per share.

On a quarterly basis, Antam booked Rp312 billion of net profit, 352% quarter on quarter higher compared to 3Q09 and a reversal from Rp256 billion loss from corresponding figure a year earlier.
Kim Eng morning notes said the result is 9% and 14% above consensus estimate for sales and net profit, respectively. 

The decline was caused by lower nickel sales volume for both ferronickel (‐17% year in year ) and nickel ore (‐8% year on year) with average selling price for nickel in ferronickel plunged 33% year on year to US$6.6/lbs.

Gold trading business cushioned the decline as gold sales volume rose 31% year on year to 12.9 tons. However, gold production declined by 7% year on year to 2.6 tons as Pongkor mine aged and Cibaliung has not commenced production.

ELTY suffers 54.04% plunge in profit

Property arm of Bakrie Group PT Bakrieland Development Tbk (ELTY) suffered a 54.04% of net profit plunge last year compared to the previous year. Bakrieland reported that it had posted Rp125 billion of 2009 net profit from a year before of Rp272.09 billion.

Bakrieland President Director Hiramsyah S. Thaib said despite a steep drop of net profit last year, still Bakrieland booked 5% growth in operating profit from Rp110 billion in 2008 to Rp125 billion.

"We booked a higher net profit in 2008 on the back of forex gain from investment in Limitless worth US$120 million," he said.

In 2008, Bakrieland booked Rp109.78 billion of forex gain from forex gain of Rp89.48 million a year before. The property also gained Rp21.05 billion from sales of subsidiaries. In total, ELTY posted Rp130.83 billion of extraordinary gains.

Without these extraordinary gains, Bakrieland should post Rp141.26 billion of net profit last year. In fact, it made a lower net profit. According to Kim Eng morning notes today, overall, both ELTY 2009 headline and bottom line results came in below consensus estimates of Rp1.16t and Rp159b respectively. For 2010, management Bakrieland expects the operation of Kanci‐Pejagan toll road to contribute Rp150 billion‐Rp200 billion to revenue. 

Last week the company has issued US$155m equity‐linked bonds with interest 8.625%, proceeds of which will be used to finance development in Rasuna Epicentrum project and Bogor Nirwana Residence. As such, gearing has increased to 90% from previously 50%.
With 2009 net profit of merely Rp125 billion, the stock is trading at 40.6x 2009 PE. Assuming 30% EPS growth in FY10, this will translate into 31.2x PER, quite expensive in Kim Eng views.

Sinar Mas provides loan on Elnusa deal

Sinar Mas Group is one of parties that has channeled loan to PT Benakat Petroleum Energy Tbk (BIPI) in a bid to buy 2.71 billion shares or 37.15% stakes in an integrated oil and services company PT Elnusa Tbk (ELSA) from the seller PT Tridaya Esta (TDE) worth Rp894.82 billion or Rp330 per share.

A source familiar with the matter said referring to prospectus of medium term notes issue by Benakat, Sinar Mas Group may provide loan to PT Indotambang Perkasa, controlling 55.57% stakes of Benakat Energy.

Benakat has issued 6 months medium term notes (MTN) on March 12 2010 to Indotambang. The proceed will be used by Benakat to bankroll Elnusa leveraged buyout. In return, Benakat doesn't need to get approval from extraordinary general meeting. The notes, bearing 5.6% of annual interest rate, will mature on September 12 2010.

Under MTN issue agreement, Benakat has pledged 37.15% stakes of Elnusa. The prospectus hasn't declared clearly to whom Elnusa shares have been pledged.

The source said Benakat may use Elnusa shares as collateral for MTN to Indotambang. But, it is also possible to pledge Elnusa to Sinar Mas Group.

On March 12 2010, Sinarmas Sekuritas, a brokerage controlled by Sinar Mas Group, crossed 2.71 billion shares of Elnusa into negotiation market.

But, according to TDE announcement to Indonesia Stock Exchange, TDE transferred 24.6% shares of Elnusa or 1.79 billion shares to Benakat.

Following the transaction, TDE will transfer 916.07 million of Elnusa shares or 12.55% to Benakat on April 12 2010.

So far, PT Pertamina (Persero) and TDE are still recorded as two controlling share holders in Elnusa. There is clearer statement regarding to new share holder in Elnusa, replacing predecessor TDE. If Benakat has pledged Elnusa to Sinar Mas, I am not surprised that Sinarmas Sekuritas would be recorded as one of Elnusa share holders.   

Davomas reports revenue plunge 88.03%

A wounded PT Davomas Abadi Tbk (DAVO) reported a 88.03% plunge on 2009 revenue, sending its bottom line in red. The company posted Rp406.06 billion of sales last year from the previous yea of Rp3.39 trillion.

In return, Davomas suffered operating loss and net loss. Operating loss ballooned to Rp1,06 trillion last year from the previous year of operating profit of Rp113.09 billion. Net loss narrowed from Rp510.65 billion in 2008 to Rp226.75 billio last year. 

Davomas, the debt defaulter, is now 80% controlled by its creditors. Hassocks Enterprise Ltd controls 23.17% in Davomas, Citi Pacific Securities owns 20,27%, Caterpillar Associates Ltd owns 11.46%, Lehman Brothers Investments Pte Ltd owns 11.11%, Krigler Holdings Ltd 7,75%, Polar Cap Investments Ltd 6.09%, and the remaining goes to other parties including public share holders.

Berlian Tanker withdraws deal on CECO

PT Berlian Laju Tanker (BLTA) is reported to withdraw an indicative offer to buy Camilo Eitzen & Co ASA as a result of failure to meet agreement.
In return, Berlian Tanker withdrew the offer on CECO. But, BLTA is open to continue negotiation deal with CECO. Berlian Tanker and CECO announced acquisition deal on January 26 2010.

Berlian Tanker also 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.

 

MNC & Linktone acquire InnoForm Media

PT Media Nusantara Citra Tbk (MNC) together with Linktone Ltd Group announced that they have completed acquisition of 75% of the ordinary shares in the share capital of InnoForm Media Pte Ltd with  total consideration of Sin$9.75 million. 

MNC takes 25% shareholding, while Linktone is assigned with 50% shareholding, each executed through its wholly owned subsidiary located in UAE. 

The acquisitions are funded entirely by the internal generated cash flows of MNC and Linktone. In addition, MNC and Linktone have the option to purchase the remaining 25% stakes, whereby 15% shareholding is exercisable within 18 months and the remaining is exercisable within 30 months from agreement date.
"We are in the process to register new members to BoD. We have appointed Steven Tan, the former President and COO of MTV Networks Asia as the Managing Director of InnoForm," Hary Tanoesoedibjo, Group President and CEO of MNC said.

According to him, the acquisition will strengthen the content distribution of the MNC group and should serve as a vehicle for MNC's content distribution and aggregation. This acquisition deal will have positive financial implication for MNC and Linktone in FY 2010 as InnoForm is expected to book revenue of US$35 million and net profit of US$2.7 million.

Axiata Berhad wants to gain 50%

Axiata Group Berhad Malaysia, controlling shareholder of 86.5% in Indonesia third biggest cellular operator PT XL Axiata Tbk (EXCL) likely wants to grab gain of 50%-65% from public investors in the private placement of up to 20% stakes or 1.70 billion shares.

After sounding a price range of Rp3,000-Rp4,200 per share of XL private placement, that is very expensive, Axiata Group today has announced that XL private placement will be held within the range of Rp3,000-Rp3,300 per share, a 5.71%-14.28% discount from today closing market at Rp3,500 per share.

Referring to the price range, Axiata Group will enable to grab Rp5.1 trillion-Rp5.61 trillion from the private placement.      

A source said by setting XL shares sale at Rp3,000-Rp3,300 per share, Axiata Group Malaysia wants to obtain 50%-65% gain due to it exercised rights to buy XL new shares of 1.42 billion at Rp2,000 per share in October-December last year.

"After buying XL new shares at Rp2,000, now Axiata Group wants to get back the money from the private placement, off course with premium gain at least 50%. I think the premium gain is too high," the source said.

Based on XL 2009 financial result, Rp3,000-Rp3,300 per share are representing 12.66x-13.92x of PER.

 

Forex gain underpins GJTL profit

Indonesia largest tire manufacturer PT Gajah Tunggal Tbk (GJTL) reported a 244.90% jump in 2009 net profit as a result of foreign exchange gain of Rp486.89 billion.

In a public announcement submitted to Indonesia Stock exchange today, GJTL posted Rp905.33 billion of net profit or Rp260 per share last year from the previous year of net loss of Rp624.79 billion or -Rp179 per share.

Gajah Tunggal's operating profit sharply rose 96.78% from Rp581.35 billion in 2008 to Rp1.14 trillion last year.

But, the company's sales fell 25.13% from Rp7.96 trillion in 2008 to Rp7.94 trillion last year. A higher operating profit was due to lower cost of goods sold.

In return, Gajah Tunggal's cash and cash equivalent ballooned from Rp85.13 billion in 2008 to Rp723.11 billion last year.

 

CLSA targets Rp1,100 for BWPT

CPO producer PT BW Plantation Tbk (BWPT) is a well managed company and is one of the fastest growing palm oil plantation companies in Indonesia. 

According to a research report published by CLSA Asia-Pacific Markets todat, BWPT is aggressively planting its estate area. 

By the end of 2012, total mature area will double in the current size to 26,000 ha. However, assuming Rp370 billion-Rp550 billion of capital expenditure (capex) for the next 3 years, BW Plantation will be generating negative free cash flows of around Rp50 billion-Rp170 billion per year. 

"Thus, we forecast the company to raise fund through debt to sustain expansion and by the end of 2012, net gearing will increase to 33%," Vera Ongyono and Wilianto Ie, CLSA analysts, said in their report.

In addition, as more area is entering young low yielding maturity, CLSA expects fresh fruit bunch (FFB) yield to decline going forward. 

Assuming a conservative 19.6 FFB yield (vs. the current yield of 27.4) in 2012, this will take its total production to more than 500k tonnes per year, increase by 50% within 3 years.

"We expect the company to generate around 25% of ROAE, while earnings could grow by 30% CAGR," the report said. 

While operational performance shows that BW Plantation is among the best in the region, the market is currently valuing the company at US$8,500 EV/ha, is still among the cheapest in the industry.
Based on a blended valuation of US$13,000 EV/ha and 13x 2011 PER, we came up with a target price of Rp1,100 per share.

BW Plantation is a small but extremely fast growing palm oil plantation with the highest FFB yield in the industry. 

By end-2012, the total mature plantation area will double in size, to around 26,000 ha. This will translate into above average earnings growth and shareholder returns, with earnings forecast to grow by 30% CAGR until 2012. The company is also one of the most leveraged to CPO price movements. While, at US$8,500 EV/ha, the company is still among the cheapest in the industry with recommendation buy.

 BW Plantation has a total land bank of 94,000 ha of which the total planted palm oil area is 39,000 hectares. As of 2009, 13,000 ha or 33% of the total planted area has reached maturity and will double in current size to 26,000 ha within 3 years. The company is aggressively planting its estate area and by 2013, total planted area should double the current size to 80,000 ha. Now, BWPT is traded 4% higher to Rp780 per share.

Indocement profit jumps 57.14%

In tandem with soaring 2009 performance, profitability of PT Indocement Tunggal Prakarsa Tbk (INTP) rose as well. Indocement posted a 57.14% jump in net profit last year compared to the previous year on the back of higher operating profit and lower interest expenses and foreign exchange loss.

Indocement, that is 51% controlled by Heidelberg Cement Germany through Britain-based company Birchwood Omnia Limited, booked Rp2.75 trillion of 2009 net profit or Rp746.12 per share from a year before of Rp1.75 trillion or Rp474.16 per share.

The company's bottom line was underpinned by other income of Rp92.37 billion last year from other expense of Rp135.06 billion.

In parallel with a higher net profit, Indocement's operating profit skyrocketed 50% from Rp2.46 trillion in 2008 to Rp3.69 trillion last year, sending its operating margin higher from 25.15% to 34.88%. Revenue slightly grew by 8.18% from Rp9.78 trillion as of December 2008 to Rp10.58 trillion in 2009.   

Salim Group, via PT Mekar Perkasa, maintains 13.03% interest in Indocement and 35.97% go to public shareholders.

MASA earning upgraded by 6%-25%

PT Danareksa Sekuritas has jacked up earning per share (EPS) forecast of Indonesia tire manufacturer PT Multistrada Arah Sarana Tbk (MASA) by 6%-25% in 2011-2012 as a result of aggressive expansion to increase production capacity.

Adding to that, sales volume estimation of MASA's passenger car radial have been increased by 5.2%-25.3% in 2011-2012 and 15.9%-53.8% for motor cycle tire.
 "We have changed our capital expenditure estimation by 71%-351% in 2011-2012. Due to expansion, we estimated that capex FY2010-2011F will be around Rp1.7 trillion," a report research published by Danareksa Sekuritas today.

Multistrada is estimated to be able to draw down Rp725 million of loan in 2010 and Rp1 trillion in 2011, sending its net gearing rising to 56% in 2010 and 83% in 2011. 

MASA is in talks with CIMB Niaga Bank and HSBC for finalizing syndicated loan worth US$200 million to bankroll massive expansion.

But, Danareksa has revised down MASA target price from Rp430 to Rp395 per share, representing 13.61x-9.61x PER 2010F-2011F. Nowadays MASA is traded at 7.07x-4.99x PER 2010F-2011F.

Axiata offers XL at Rp3,000-Rp4,200

Axiata Group Berhad is offering up to 20% shares or 1.70 billion shares in PT XL Axiata Tbk (EXCL), Indonesia third largest cellular operator, at the price range of Rp3,000-Rp4,200 per share, representing 12.66x-17.22x of 2009 price to earning ratio (P/E).

The price range is within XL closing shares yesterday dropped Rp25 per share to Rp3,475, representing 14.66x 2009 P/E. In comparison, PT Indosat Tbk (ISAT), Indonesia second biggest cellular operator, yesterday closes to Rp6,200 per share, representing 22.48x 2009 P/E.   

A source familiar with the matter said XL's private placement agents have informally sounded the price range to potential investors.

"XL is offered at the price range Rp3,000-Rp4,200 per share, which is very high and quite expensive, given its debt burden," the source said to Insider Stories yesterday.

Referring to the range, Axiata Group may seize Rp5.11 trillion-Rp7.14 trillion from XL private placement.

Axiata Group is planning to divest up to 20% of XL stakes in a bid to enlarge public shares holding from current position of 0.2% stakes.
Goldman Sachs has been appointed as sole global coordinator and along with CIMB Investment Bank are acting as joint bookrunners. Goldman Sachs, CIMB Investment Bank, and PT Mandiri Sekuritas are joint lead managers of the offering. The offering is expected to be completed by April of 2010.

XL 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.

But, cash and cash equivalents of the operator (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.

Benakat pledges 37.15% Elnusa

It is not surprised to know that PT Benakat Petroleum Energy Tbk (BIPI) has put 2.71 billion of PT Elnusa Tbk (ELSA) shares or 37.15% on pledge, following the issue of promissory notes worth Rp894.82 billion to PT Indotambang Perkasa, controlling of 55.57% stakes in Benakat.

Benakat has issued promissory notes on March 12 2010 to Indotambang. The proceed will be used by Benakat to bankroll a leveraged buyout deal of Elnusa from PT Tridaya Esta (TDE). In return, Benakat doesn't need to get approval from extraordinary general meeting. The notes, bearing 5.6% of annual interest rate, will mature on September 12 2010.

In a prospectus published by Benakat today, TDE is 98.20% controlled PT Grahalestari Selaras and the remaining goes to PT Cakrawala Tata sejahtera. TDE President Director and President Commissioner are Djoko Eko Suprastowo and Yus Suyono Asmono respectively.

Who is behind Indotambang Perkasa?

The largest shareholder in Indotambang is PT Best Capital International of 37.50%, PT Sakti Sukses Sejahtera with 30% stakes, PT Cahaya Multitama Abadi 20%, and PT International Labuan Resources 12.50%. Indotambang office is located on Jl Tanah Abang II No.70, Jakarta, the same address with previous building office of Danatama Makmur before moving to Danatama Square building, Kuningan.

Before acquiring Elnusa, TDE pledged 37.15% of Elnusa shares to Dharma Investments on September 16 2008 as well. The pledge was one of stumbling block when consortium of Saratoga Capital & Northstar Pacific Partners offered to buy Elnusa shares. Some said that Saratoga had left TDE alone to restructure its debt with Dharma Investments.

The first story of Elnusa shares pledge came from PT Danareksa (Persero). TDE put those shares as collateral to Danareksa when it obtained loan facility worth US$11.94 million and US$45.80 million. 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.   

Anta Tour profit rises on interest gain

Tour and travel agency PT Anta Express Tour & Travel Service Tbk posted Rp15.89 billion of net profit last year, 36,98% jump compared to the previous year of Rp11.60 billion as a result of soaring interest gain.

The company's interest gain sharply rose 107.78% from Rp1.67 billion in 2008 to Rp3.47 billion as of December last year.

But, Anta Tour & Travel's revenue slightly decreased 8.56% from Rp2.22 trillion in 2008 to Rp2.03 trillion in 2009.

Operating profit grew 5.41% from Rp16.27 billion as of December 2008 to Rp17.15 billion last year due to lower cost of goods sold.

DOID in net loss, BUMA remains intact

PT Delta Dunia Makmur Tbk (DOID) suffered a consolidated net loss last year on the back of property assets write-off and a tiny contribution of Indonesia second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA).
A source familiar with the matter said despite a minimum impact of BUMA consolidation starting on November last year, BUMA's profit last was eroded by cost of bond issue worth US$600 million.

"BUMA didn't make any steep growth in net profit in Q4 compared to Q3 last year," the source said to Insider Stories. Other source said BUMA's bottom line last year was close to Rp1 trillion.

As of September last year, BUMA posted Rp3.79 trillion of net revenue and Rp704 billion of net profit, growing 20.6% and 67% respectively compared to the same period in 2008. 

Coal production slightly rose 2.7% to 23.1 million tons by the end of September last year compared to the same period 2008, while overburden removal grew 24% YoY to 206.3 million bank cubic meter. Debt to equity ratio steeply feel from 1.9x to 1x while net cash flow remained intact.   
Despite the exit from two contracts, Truba Coal Manunggal and Sebuku in first quarter 2009, BUMA posted 20.6% growth in net revenue as of September 2009 compared to the same period in 2008. BUMA's net profit jumped 67% YoY partly underpinned by Rp206 billion foreign exchange gain compared to Rp800 million loss in September 2008.
But, BUMA's profitability, gross margin, operating margin, and EBITDA margin, droped to 26.6%, 22.9%, and 39% respectively by the end of September 2009 from 27.4%, 23.9%, and 41.4%.  BUMA's net margin increased from 13.4% as of September 2008 to 18.5% last year.

Based on data from Indonesia Stock Exchange, DOID shares dropped to Rp1,400 per share on last Friday, the lowest closing level in 60 trading days on the back of rights issue rumor. But, DOID Corporate Secretary Andre Soelistyo said Delta Dunia Makmur doesn't has any plan to rights issue. "We are not in the process of rights issue," he said.

How about BUMA's fiercest contender, PT Pamapersada Nusantara, Indonesia largest coal mining contractor?
For the first nine months operation last year, Pama posted 33% jump in revenue from 8.27 trillion to Rp10.99 trillion, taking 52% of UNTR consolidated revenue. PAMA enabled to increase gross margin from 20.2% to 21.7% as of September 2009.
PAMA's coal production rose from 44.3 million tons by the end of September 2008 to 48.5 million tons, while overburden removal rose from 329.5 million bcm to 435.5 million bcm by the end of September 2010.  

PP profit 1.4% higher than estimation

State-owned contractor PT Pembangunan Perumahan Tbk (PTPP) posted 2009 net profit of Rp163.26 billion, 1.4% higher than early estimation of Rp161 billion. PP's bottom line last year rose 34.25% compared to net profit in 2008.

Pembangunan Perumahan said it has set target of Rp367 billion of net profit this year, 124.79% jump compared to 2009 net profit.

In a financial report published yesterday, PP booked a slight revenue last year of Rp4.20 trillion from a year before of Rp3,93 trillion.
But, the company enabled to post 37.34% growth in its operating profit from Rp267.86 billion in 2008 to Rp367.89 billion by the end of 2009 on the back of lower operating expense. Operating margin rose from  6.81% in 2008 to 8.75% last year.

Again, Mobile-8 falls into default

PT Mobile-8 Telecom Tbk (FREN) again has fallen into default. Today, a wounded CDMA-based operator that used to be owned and controlled by PT Global Mediacom Tbk (BMTR) declares unable to pay 12th interest and ninth fine of rupiah restructured bond.
Due to failing the interest payment, Indonesia Stock Exchange today has suspended shares trading in all markets. Speaking in a public statement to Indonesia Stock Exchange today, Mobile-8 Director Anthony C. Kartawiria said as of the payment day, the company still unable to pay the bond interest as it failed to obtain cash flow.
He said that Mobile is striving to fulfill the obligation during spare time provided in bond issue agreement.
According to Mobile-8 September financial report, rupiah bond worth Rp675 billion was restructuring. The maturity has been extended to June 15 2017. Interest payment is set into four schemes, 12.375% for 9 quarters starting on June 15 2007, 5% for 8 quarters starting on September 15 2009, 8% for 12 quarters starting on September 15 2011, and 18% for 12 quarters starting on September 15 2014.
Outstanding interest due in March 15 and June 15 2009 including penalty is to be paid in four equal payments and the last payments date is March 15 2010. Mobile-8 must to maintain a sinking fund in the amount of two times next interest payments.
In my view, I don't believe what is Mobile-8 said in the statement. I have known for long time that the company will fail to meet its commitment. If I were Mobile-8 bond holder, I would rather bring it into court than convert bonds into shares.       

Indocement sales volume falls 8%

PT Indocement Tunggal Prakarsa Tbk (INTP)  posted a total cement sales 13.4 million tons last year, fell 8% from the previous year of 14.6 million tons.

It suffered a 3.9% plunge in total sales volume domestically last year from 12.3 million tons in 2008 to 11.8 million tons. But, the company's sales volume increased significantly from a 14% drop during the first semester last year.

In a public expose presentation submitted to Indonesia Stock Exchange today, the cement producer that is controlled by Heidelberg Cement posted a plunge of export sales from 2.3 million tons in 2008 to 1.6 million tons last year as a result of global economic slump.
In the local market, Indocement grabbed a lower market share of 30.2% from a previous year of 31.7%.
Two cement mills with a total capacity of 1.5 million tons of cement annually will operate in April or May 2010, taking a total investment of US$35 million.
The company is pondering to add one cement mill with 1.5 million tons of cement a year built in Citeureup and will be commercially operated in 2012. Considering higher growth in the local market, Indocement is planning to expand its business by building new cement plant in the next 3-4 years.

Barito collects more Gozco shares

PT Barito Pacific Tbk (BRPT) has increased its shares ownership in CPO producer PT Gozco Plantations Tbk (GZCO).
BRPT, a parent that is controlled by Indonesian tycoon Prajogo Pangestu, bought 500,000 shares, 10 million shares, and 19,21 million shares of GZCO respectively on January 22 2010, March 8, and March 10 from the market.
In total, Barito now owns 529.71 million shares or 10.59% in GZCO from previous position of 500 million shares or 10%. Gozco posted a 273.31% jump on its net profit from Rp54.75 billion in 2008 to Rp204.39 billion last year.

 

Benakat sells notes to buy Elnusa

PT Benakat Petroleum Energy Tbk (BIPI) has used shareholder loan facility to settle and complete acquisition of 2.71 billion shares or 37.15% stakes in PT Elnusa Tbk (ELSA) worth Rp894.3 billion from seller PT Tri Daya Esta (TDE).

Speaking to Insider Stories today, Vice President of Danatama Makmur's Investment Banking Danatama Makmur Steffen Fang, said Benakat has issued one year notes worth Rp894.3 billion to controlling shareholder PT Indotambang Perkasa.    

"Notes proceed has been used by Benakat to finance Elnusa acquisition deal from TDE," he said who is advising Benakat.

Last Friday saw Elnusa shares crossing in the negotiation market held by PT Sinarmas Sekuritas, a closing signal of Elnusa acquisition deal.

At the same day, Elnusa shares volume sharply rose to 101.73 million shares worth Rp35.14 billion with 1,509 times transactions. Elnusa closed Rp15 per share higher to Rp345 from previous day. On March 5 2009, Elnusa shares trading volume and value also ballooned. 

Benakat's Finance Director Michael Rusli said ELSA shares crossing was estimated on 2.30 PM in Indonesia Stock Market, transferring from PT Tri Daya Esta, the seller, to Benakat Energy.

Benakat and Tri Daya signed share sale and purchase agreement on February 11 2010. Benakat, replacing its predecessor consortium Saratoga Capital and Northstar Pacific Partners, agreed to buy 37.15% shares in Elnusa at Rp330 per share or Rp894.3 billion. The consortium failed to close the deal as a result of failure in debt restructuring in relations to Elnusa shares pledge to Singapore-based company Dharma Investments Pte Ltd.