BUMI closes US$360 mio non preemptive

PT Bumi Resources Tbk, Indonesia's largest coal mining, today announces that it has concluded the non preemptive issuance of 1.37 billion ordinary shares at an issue price of Rp2,366/share, amounting to US$ 360 million.
In a press statement published at the company's website, Bumi President Director Ari S. Hudaya said the company will disclose the names of the counterparties on 4 October 2010 and list the new shares on the Indonesian Stock Exchange as per regulation and announced timetable.
The total number of outstanding shares of the company will consequentially increase to 20.77 billion on 5 October 2010.

Disclosure: No position at the stock mentioned above. 

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Rig Tenders operating profit up 294%

Publicly listed PT Rig Tenders Indonesia Tbk (RIGS) posted a steep jump in operating profit by 294.87% as a result of shrinking operating expenses.
Rig Tenders is engaged in the chartering of tugs and barges to transport coal and other bulk aggregates
In the first half financial statement submitted to Indonesia Stock Exchange today, Rig Tenders posted US$4.62 million operating profit in 1H 2010 from US$1.17 million a year earlier.
The company's operating expenses shrank 16.58% from US$22.56 million in 1H 2009 to US$18.82 million in 1H 2010.
In line with lower operating expenses, Rig Tenders also booked a revenue decrease by 1.22% from US$23.73 million in 1H 2009 to US$23.44 million in 1H 2010.  
At the bottom line, Rig Tenders booked US$3.58 million net profit in 1H 2010, a 7,492% jump from US$47,183.

Disclosure: No position at the stock mentioned above.  

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Multibreeder secures Rp500 bio loans

PT Multibreeder Adirama Indonesia Tbk has secured Rp500 billion loan facilities from PT Bank CIMB Niaga Tbk on July 8 2010.
Based on the financial statement submitted to Indonesia Stock Exchange (IDX), the company had used Rp300 billion of the so-called special transaction loan to pay restructured debt with BNP Paribas, Singapore on August 23 2010. The 4 year loan charges 11% annual interest.
Multibreeder plans to use Rp20 billion current account facility and Rp180 billion fixed loan facility as additional working capital to develop business. The 1 year facilities will be charged by floating interest rate of 10.75% annually.
The company posted a 29.62% drop in net profit on the back of lower net sales. Based on the financial statement published today, Multibreeder booked Rp62.13 billion in the first half of this year from Rp88.28 billion a year earlier.
The company's operating profit plunged 35.49% from Rp114.86 billion in 1H 2009 to Rp74.10 billion in 1H 2010.
Gross profit also slumped 12.50% from Rp222.91 billion in 1H 2009 to Rp195.04 billion in 1H 2010. Multibreeder booked a 5.29% fall in net sales from Rp735.02 billion in 1H 2009 to Rp696.11 billion in 1H 2010.

 
Disclosure: No position at the stock mentioned above.

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Danareksa posts Rp46.83 bio net profit

State-owned company PT Danareksa (Persero) today announces Rp46.83 billion net profit at the end of June 2010 from Rp52.55 billion net loss in the first half of 2009.
In the financial statement published today, Danareksa's better performance was mainly contributed by a steep jump in operating revenue.
The company posted Rp241.75 billion revenue in 1H 2010, a 105.59% jump from Rp117.59 billion a year earlier.
It booked higher interest charges of 11.17% from Rp72.09 billion in 1H 2009 to Rp80.14 billion in 1H 2010.
Operating expenses rose 3.67% from Rp98.26 billion in 1H 2009 to Rp101.87 billion in 1H 2010.
Danareksa turned into positive operating profit of Rp59.74 billion in 1H 2010, a 213.25% increase from Rp52.75 billion operating loss in 1H 2009.

Disclosure: No position at the stock mentioned above.  

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Aqua 1H net profit surges 69.23%

The biggest bottled water producer in Indonesia, PT Aqua Golden Mississippi Tbk (AQUA), scored a net profit of 69.23% in first half of 2010.
In a financial report published today, Aqua booked a net profit of Rp65.66 billion in first half of 2010 compared with the same period last year of Rp38.80 billion.
Operating income of the company which has just won permission to become a private company grew 40.74% from Rp58.50 billion in first half of 2009 to Rp82.33 billion at the end of June 2010.
Aqua’s revenue rose by 14.73% from Rp1.29 trillion as of June 2009 to Rp1.48 trillion in first half of 2010.
During 12 months of last year, the company’s revenues reached Rp2.73 trillion, while also booked operating income of Rp127.21 billion, and net income of Rp95.91 billion.

Disclosure: No position at the stock mentioned above. 

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Barito Pacific 1H profit drops 93.54%

PT Barito Pacific Tbk (BRPT), owned by Indonesian tycoon Prajogo Pangestu, suffered a 93.54% plunge in net profit during the first half of this year on the back of ballooning cost of goods sold and net other charges.

In the financial statement published today,  Barito, parent of two petrochemical firms which are planning to merge, PT Tri Polyta Indonesia Tbk and PT Chandra Asri, booked Rp25.94 billion or Rp4/share earning in 1H 2010 from Rp386.17 billion or Rp55/share in 1H 2009.

Barito posted Rp225.23 billion net other charges in 1H 2010, a reversal from Rp5.07 billion net other income in 1H 2009.

The charges rise was mainly contributed by ballooning financial charges by 60.54%. However, foreign gain fell to Rp58.39 billion from Rp102.02 billion in 1H 2010.

The company's operating profit tumbled 41.53% from Rp707.16 billion in 1H 2009 to Rp413.51 billion in 1H 2010 as a result of higher COGS than revenue growth.

Barito recorded a 34.61% increase in revenue from Rp6.53 trillion in 1H 2009 to Rp8.79 trillion in 1H 2010.

Disclosure: No position at the stock mentioned above.

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Indika picks Macquarie & Citi

PT Indika Energy Tbk (INDY), the parent company of coal mining company PT Petrosea Tbk (PTRO), has appointed Macquarie Securities and Citi as joint bookrunner to sell at least 18% of Petrosea shares during second offering.

Petrosea re-floating shares into the market after the stock split is intended to unlock the hidden value of Petrosea, especially on PT Santan Batubara.
An executive familiar with this information revealed that the re-float of Petrosea shares will take place after it completes a stock split in a near time.
“The offering of Petrosea shares will take place in the fourth quarter this year of next year to meet the requirement from Bapepam-LK. Stock split is potentially completed with ratio 1:5,” he said.
In a disclosure to Indonesia Stock Exchange on September 14, 2010, Petrosea said it has planned to hold an extraordinary general meeting of shareholders, which is scheduled to take place on October 21, with 2 agendas: stock split and basic budget change.
At the end of June 2010, Indika Energy controled 99.38 million shares of Peetrosea or 98.55%, while 1.45% belonged to public investor.
However, President Director Indika M. Arsjad Rasjid P.M. declined to comment on it. “It takes longer preparation [for Petrosea secondary offering],” he said yesterday.
He also added that the sale is to meet the requirement from Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) after the company accomplished a tender offer for Petrose.
Indika requires to refloat Petrosea shares to the market in 2 years after completing tender offer, aiming at adding more public ownership.
“Well, Indika should release at least 18% of Petrosea shares [to fill the requirement of 20% shares in public],” he said.
Arsyad added that Indika could further sell Petrosea shares after the stock split. Regarding the stock split, he disclosed that the ratio had not been stated.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Several local houses estimate that sell-off pressure remains the main factor should be carefully watched by investor.
Despite a conducive economy, following curbed inflation, second liners are still estimated to dominate Indonesia stock market today. Here are stock recommendations for today as reported by Bisnis.com.

Panin Sekuritas:

The selling pressure will continue today and Jakarta Composite Index (JCI) will potentially weaken. The recent increase in the index, which settled at 3.495 at closing yesterday, drove several shares into an overbought area. JCI is predicted to move within the range of 3,445-3,524.

eTrading Securities:

Domination of the second-liner in the market yesterday is expected to continue today. JCI is predicted to move within the range of 3,430-3,525, with shares to watch including JPFA, INDF, CPIN, and TURI.

Trimegah Securities:

The positive market sentiment became the catalyst for JCI but market players must be aware of the selling pressure. Today, the index potentially move between 3,474 and 3,515, with recommended shares: AKRA and SMCB.

Sinarmas Sekuritas:

Optimism on controlled inflation in September may become a catalyst for the index. Today, JCI is forecasted to settle in the range of 3,402-3,521. Shares to watch: BBRI, BBNI, and BBKP.

 
Disclosure: No position at the stock mentioned above.  

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CS, Deutsche, and JP help BUMI bonds

Indonesia's largest coal miner PT Bumi Resources Tbk (BUMI) today launches proposed US$ denominated bonds.
A source familiar with the matter said the company has mandated Credit Suisse (CS), Deutsche Bank, and J.P.Morgan. 

In a recent notes issued by JP Morgan, Bumi plans to raise up to US$300 million to repay its two convertible bonds that are puttable for a total of around US$430 million before the year end.
"We believe that this should be credit positive for Bumi. If the company is successful in raising the full US$300 million, it would go a long way to address Bumi’s refinancing risk," said Asia Credit Roundup report published by J.P.Morgan.

Moody's Investors Service has today assigned a provisional (P)Ba3 senior secured bond rating to the senior, secured US-dollar notes issued by Bumi Investment Pte Ltd and wholly owned and unconditionally and irrevocably guaranteed by PT Bumi Resources Tbk (rated Ba3/negative).
The outlook on the rating is negative. The proceeds of the bonds will be deployed toward debt refinancing at the Bumi level hence there will be no incremental increase in leverage.
Moody's expects to affirm the bond rating and remove it from provisional status upon the closing of the bond issue and review of final terms. The proposed bond will rank pari passu with all existing rated indebtedness. 

Disclosure: No position at the stock mentioned above. 

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Pertamina-Medco in talks to merge

State Oil Enterprises (Ltd) and PT Medco Energi Internasional Tbk (MEDC) have been intensely talking efforts to create a synergy, including sounding several options, such as operating partnership, merger, and acquisition.
On the other hand, Pertamina's plan to issue bonds and realize the IPO of PT Pertamina Hulu Energi (PHE) is still waiting for approval from the State Ministry for State-owned Enterprises (SOEs) since it has something to do with the completion of financial statement audit and the revision of the profit target for 2010.
VP Corporate Communication of Pertamina Mochamad Harun confirmed the two oil and gas companies had been intensely trying to find a common understanding to create a synergy, especially in the past 3 months.
"We have reached a mutual understanding on synergy platform. We are still conducting review. Some models have also been discussed, such as operating partnership, merger, or acquisition," he informed yesterday as reported by Bisnis newspaper today.
Project Director of Medco Energi Internasional also confirmed the corporate actions of the two companies, adding the two companies had been making intensive discussion over the plan. "However, we cannot yet give concrete information on the synergy." 

Disclosure: No position at the stock mentioned above.

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Adira Finance to issue Rp1.5 trio bonds

Publicly listed multifinance company PT Adira Dinamika Multi Finance Tbk today unveils up to Rp1.5 trillion bonds issuance scheduled on November 1 2010.
Based on the bonds prospectus published today, Adira Finance has picked three lead bonds underwriters PT Danareksa Sekuritas, PT HSBC Securities, and PT Indo Premier Securities with full commitment underwriting.
Adira Finance will sell A, B, C, and D series of fixed coupon bonds. A Series is set to mature in the next 18 months, B series will due in 24 months, 30 months and 36 months maturities for C and D series respectively.
According to the plan, the company will utilize the bonds proceed to support financing on motorbike.
The proposed bonds has rated idAA by stellar rating agency PT Pemeringkat Efek Indonesia.
 

Disclosure: No position at the stock mentioned above.

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Moody's may downgrade BSP ratings

Moody's Investors Service has put on review for possible downgrade the B3 corporate family and secured bond rating of PT Bakrie Sumatera Plantations Tbk (BSP).
"This rating action is driven by a range of concerns about BSP that have accumulated during recent months," says Alan Greene, a Moody's Vice President and Senior Credit Officer, in a press statement.
The company has seen a steady increase in leverage as reported in its 2Q 2010 financial statements despite a large rights issue of US$520 million completed earlier this year, some major accounting discrepancies were discovered in Q1 2010, and performance by the CPO business has been generally lackluster due to unusual weather patterns.
"In addition, we see uncertainty about the completion of the long-running acquisition of the Domba Mas oleo-chemical plants, with the timing of completion and structure of debt at that level still under negotiation," says Greene.
Moody's rating review will focus on the progress of the Domba Mas acquisition, the resulting terms and conditions of the debt at the acquired oleo chemical plants and potential for subordination of BSP's bondholders, BSP's plans for the start-up of downstream operations and the associated supply and offtake arrangements, and the refinancing plans for the US$160 million maturing bonds in November 2011.
Moody's expects to complete the review no later than the end of October 2010.  The last rating action with respect to BSP was taken on April 16, 2009, when its corporate family and secured bond ratings were downgraded to B3 from B2 with a negative outlook.
BSP's ratings have been assigned by evaluating factors Moody's believes are relevant to the company's credit profile, including its business risk and competitive position compared with other companies within the industry, capital structure and financial risk, projected performance over the near to intermediate term, and management's track record and tolerance for risk.
These attributes were compared against other issuers both within and outside of BSP's core industry. Its ratings are believed to be comparable to those of other issuers of similar credit risk.
BSP, is an Indonesian upstream plantation company operating mainly in Sumatra, Indonesia, with rubber plantations of some 19,000 hectares and oil palm plantations of 110,000 hectares.
It was 42% owned by the conglomerate PT Bakrie & Brothers Group (BNBR) (as of 30 June, 2010) and is consolidated into BNBR's financial statements. BSP was listed on both the Jakarta and Surabaya Stock Exchanges in 1990.

Disclosure: No position at the stock mentioned above. 

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Stock recommendations today

Jakarta Composite Index (JCI) is estimated to face correction after surpassing all time high level of 3,500. But, foreign investos keep buying shares in Indonesia Stock Exchange. Here are recommendations from several securities companies.

Trimegah Securities:
Market players certainly should anticipate the potential extended pressure of Jakarta Composite Index (JCI) that is estimated to move between 3,445 and 3,484.

During yesterday’s trading, the selling pressure somehow has caused a slight gain of JCI by touching 3,472.71 after breaking at 3,500 in the first session. The recommended stocks are PGAS and SMRA.

ETrading Securities:JCI may move within the range of 3,443 and 3,525 during today’s trading after posting a slight gain as much as 4 points during yesterday’s closing session. The recommended stocks are: JSMR, SMGR, SMCB, and INTP.

Sinarmas Sekuritas:Considering the fact that most stocks have booked their highest gains, JCI may be potentially corrected today. The index shall move between 3,402 and 3,521 with recommended stocks TLKM, AUTO, and PGAS.

Disclosure: No position at the stock mentioned above.

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Indika 1H revenue soars 116.95%

Publicly listed EPC and coal mining company PT Indika Energy Tbk today announces a 116.95% jump in revenue in the first half of 2010 as a result of contribution surge from contracts and services.

In 1H 2010 financial statement submitted to Indonesia Stock Exchange (IDX) today, Indika posted Rp1.77 trillion revenue in 1H 2010 from Rp815.17 billion a year earlier.

Contracts and services contributed Rp1.67 trillion in 1H 2010, a steep jump from Rp615.29 billion in 1H 2009, while coal sales contribution fell from Rp199.88 billion in 1H 2009 to Rp95.05 billion in 1H 2010.

In line with soaring revenue, Indika's operating profit also experienced a steep jump by 111.27% from operating loss of Rp36.18 billion as of June last year to Rp4.08 billion operating profit.

Net others income grew 12.05% from Rp470.23 billion in 1H 2009 to Rp526.91 billion in 1H 2010. Net income contribution from associated companies, such as coal mining PT Kideco Jaya Agung, slightly lowered from Rp799.73 billion in 1H 2009 to Rp721.23 billion in 1H 2010. Indika booked Rp467.16 billion net profit in 1H 2010, a 28.13% rise from Rp364.61 billion a year earlier.

Disclosure: No position at the stock mentioned above.

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Agis secures US$150 mio from GEM

Publicly listed PT Agis Tbk (TMPI) has secured US$150 million loan facility from Switzerland-based

investment company Global Emerging Market (GEM). The facility will be used by Agis to expand business into mining sector.
Referring to a formal press statement obtained by Bisnis today, Agis Director Steven Kesuma said the approval from GEM on Agis expansion to mining sector is attached to memorandum of understanding.
"In upcoming weeks, Agis will implement the agreement in a bid to bid target companies," he said.
But, he didn't disclose the target companies.
GEM has secondly provided loan facilities to Agis to support its business expansion. Previously, Agis secured IDR200 billion loan from GEM. In return, these investment company has an option to swap the debt into Agis shares.
As interest payment, shareholders gave approval to Agis to do 500 million warrants issuance in the first stage from a total of 1 billion warrants.

Disclosure: No position at the stock mentioned above.

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Pan Brothers 1H profit rises 90.43%

Textile-based manufacturer PT Pan Brothers Tbk (PBRX) booked a 90.43% jump in net profit in the first half of this year on the back of lower net other charges.
In the financial statement publised today, Pan Brothers posted Rp12.74 billion net profit or Rp29 per share in the first half of this year from Rp6.69 billion or Rp15 per share net profit a year earlier.
The company enabled to shrink net other charges from Rp25.71 billion in the first half of last year to Rp6.54 billion in 1H 2010.
Operating profit dropped 33.57% from Rp32.47 billion in 1H 2009 to Rp21.57 billion in 1H 2010.
In line with the drop, it also suffered a 26.53% fall in net sales from Rp886.09 billion in 1H 2009 to Rp650.99 billion in 1H 2010.

Disclosure: No position at the stock mentioned above.

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Petrosea posts US$20.16 mio earning

Coal mining contractor PT Petrosea Tbk (PTRO), wholly owned subsidiary of PT Indika Energy Tbk (INDY), posted a positive bottom line in the first half of this year, a reversal from net loss.
In a financial statement published today, Petrosea booked US$20.16 million net profit in the first half of 2010 from US$14.56 million net loss as of June 2009.
The better performance of the company was mainly contributed by foreign exchange gain of US$453,000 in 1H 2010 from foreign exchange loss of US$3.77 million in 1H 2009.
Petrosea's operating profit slight rose 1.75% from US$16.50 million in 1H 2009 to US$16.79 million in 1H 2010.
Revenue increased 9.56% from US$81.04 million in 1H 2009 to US$88.79 million in 1H 2010. But, cost of goods revenue ballooned 9.75% from US$56.15 million in 1H 2009 to US$61.63 million in 1H 2010.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Jakarta Composite Index (JCI) is predicted to show the positive trend as foreign investors dominate the trade in the market. Banking shares are in the top recommend list, followed by commodity shares.

Here are recommendations from several securities companies as quoted from Bisnis.com today.

Trimegah Securities:
Jakarta Composite Index (JCI) successfully recorded the new high after jumping by 2%, as regional and global markets strengthened partly gave positive sentiment to the market condition.

The formation of golden cross in Stochastic was an indication of a chance to further uprising. The index today is predicted to move within the range of 3,446-3,494, with recommended shares are BBRI and SMCB.

eTrading Securities:
JCI strengthened by 70 points (+2.01%) to close at 3,468 as foreign investors recorded Rp394 billion net buy, mainly in banking and coal-mining sectors. Today, the index will move within the range of 3,428–3,486, and several shares to watch are BJBR, BUMI, ADRO, and BRPT.

Panin Sekuritas:
JCI jumped more than 2% yesterday, mainly boosted by banking sector. Expectation on low inflation and prosperous economic growth make Indonesia remain attractive for foreign investors. 

Today, the index is forecasted to potentially rise, tenting the next resistance level at 3,500. In the meantime, the support level is at 3,432. The shares in banking and consumer goods sectors seem to be interesting choices in trading today.

Sinarmas Sekuritas:
JCI wil potentially test the psychological level of 3,500 today as foreign funds flow greatly in to domestic market. Be aware of the profit taking action, considering than the index gained relatively high in the last two days. The index will move within 3,385-3,537. Watch: BBRI, JMSR, and INDF.

Reliance Securities:
JCI surged by 2% yesterday, led by ASII, BBCA and GGRM as net buy was recorded as much as Rp185,573 billion. The index is prone to profit taking action today, as a US report, which will be released today, predictably will show a drop in consumer confidence that will give negative sentiment to regional markets. The JCI will move between 3,425 and 3,517. Recommended shares: BBRI, BDMN, ADRO, and INCO. 

Disclosure: No position at the stock mentioned above.

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Pan Brothers to buy garment trading

PT Pan Brothers Tbk, publicly listed Indonesia-based textile company, plans acquire 51% stakes in Jakarta-based garment trading house.
In a public statement filed to Indonesia Stock Exchange (IDX), by acquiring 51% stakes, Pan Brothers aims to control the garment house and hopes a synergi to enter international market. The company will use proceed from rights issue to buy the garment house. But, Pan Brothers didn't disclose the certain name and the seller of the garment house.
Pan Brothers also plans to split its nominal stocks with 1:4 ratio, ballooning its equity from 1.78 billion shares from 445.44 million shares.
Director of Pan Brothers Fitri Ratnasari Hartono said that such corporate action aims to make the company’s stocks more liquid particularly with the higher volume of stocks.
At the moment, the face value of the company’s stock reached Rp100, while the market price has gone up 6.74% to Rp950.
“The company plans to hold the second right issue using the audited financial statement as per 30 June 2010 as well,” he said during the press announcement filed to Indonesia Stock Exchange.

Disclosure: No position at the stock mentioned above.

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Tower sets IPO price Rp1,675-Rp2,100

PT Tower Bersama Infrastructure Tbk, a provider of telecommunication towers, is planning to issue 755 million new shares or 15.86% through an initial public offering (IPO) at Rp1,675-Rp2,100 per share or Rp1.26 trillion-Rp1.59 trillion.
The IPO is scheduled to take place on October 26, 2010. Following the IPO, PT Provident Capital and PT Wahana Anugerah Sejahtera, Tower Bersama's existing shareholders, will divest 339.75 million shares or 7.14%, snapping Rp569.08 billion-Rp713.48 billion.
Agung Prabowo, Managing Director of PT UBS Securities Indonesia, said the divestment will be held at the same level price of IPO.
In an IPO prospectus published today, it is stated that Tower Bersama is preparing a green shoe option, with 113.25 million shares to stabilize the price within 30 days after the IPO.
The additional shares for green shoe option belong to Provident Capital and Wahana Sejahtera, holding 29.07% shares before the IPO.
Tower Bersama has appointed two underwriters UBS Securities dan PT Indo Premier Securities.
According to the plan, 30% fund gathered from the IPO will be utilized as the capital expenditure to support acquisition, while the rest will be allocated for constructing telecommunication towers in several sites. 

Disclosure: No position at the stock mentioned above.

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KBP gets Rp1.56 trio from Harum Energy

PT Karunia Bara Perkasa (KBP), shareholder of Indonesia's thermal coal miner PT Harum Energy Tbk and controlled by Indonesian tycoon Kiki Barki, snaps up Rp1.56 trillion cash from initial public offering (IPO).
Based on additional prospectus published today, KBP has shrank shares size sold during Harum Energy's IPO from 450 million shares to 300 million shares.
In total, Harum Energy plans to sell 500 million shares worth Rp1.56 trillion or Rp5,200 per share from initial plan of 650 million shares. The company also issues 200 million new shares worth Rp1.04 trillion.
Harum Energy has mandated two lead underwriters PT Ciptadana Securities and PT Mandiri Sekuritas.
Harum Energy also cut green shoe size from 65 million shares to 50 million shares.
The company plans to use the IPO proceed worth US$50 million to develop coal production in its subsidiary dubbed PT Santan Batubara, which also subsidiary of PT Indika Energy Tbk (INDY), in 2010 and 2011.
About US$30 million of the proceed will be utilized by Harum Energy to bankroll business development, maintenance, and purchase of 20 boats to jack up coal capacity transportation in 2010 and 2011.
It also plans to use US$15 million of the proceed for working capital, including coal mining contractor belong to its subsidiary in 2011 and 2012.
A certain amount of the remaining proceed will be used to exploration, pay some of DBS debt facility, and support acquisition and other projects.
Harum Energy posted Rp894.7 billion revenue in the first quarter of this year. In 2009, it booked Rp4.60 trillion revenue. Operating profit reached Rp163.6 billion in the first quarter of this year and Rp134.1 billion net profit.

Disclosure: No position at the stock mentioned above.

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Tower Bersama to issue 15.86% in IPO

PT Tower Bersama Infrastructure Tbk, a provider of telecommunication towers, is planning to issue 755 million new shares or 15.86% through an initial public offering (IPO) scheduled to take place on October 26, 2010.
In an IPO prospectus published today, it is stated that Tower Bersama is preparing a green shoe option, with 113.25 million shares to stabilize the price within 30 days after the IPO.
The additional shares for green shoe option belong to the shareholders of Tower Bersama, namely PT Provident Capital and PT Wahana Anugerah Sejahtera, holding 29.07% shares before the IPO.
Tower Bersama has appointed two underwriters, i.e. PT UBS Securities Indonesia dan PT Indo Premier Securities.
According to the plan, 30% fund gathered from the IPO will be utilized as the capital expenditure to support acquisition, while the rest will be allocated for constructing telecommunication towers in several sites. 

Disclosure: No position at the stock mentioned above. 

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Tri Polyta operating profit falls 60%

Indonesia’s largest polypropylene producer, PT Tri Polyta Indonesia Tbk (TPIA), booked 60.24% operating profit drop in the end of June 2010.
In the financial statement of the first half 2010 published today, it was reported that such drop was mainly driven by the jump of company’s cost of goods revenue as much as 23.91% from Rp1.84 trillion to Rp2.28 trillion during the first half of 2010.
Tri Polyta’s operating profit during the first semester of 2010 reached Rp221.57 billion from last year’s, Rp557.23 billion.
The company also posted net income drops by 54.39% from Rp364.62 billion during the first half of 2009 to Rp166.27 billion in the first semester of 2010.
The net revenue also rose slightly by 4.05% from IDR2.47 trillion in the end of June 2009 to Rp2.57 trillion in the end of June 2010.
Tri Polyta plans to hold a merger with PT Chandra Asri as it plans to issue 2.33 billion new shares to be exchanged with 100% shares of Chandra Asri whose intrinsic value reaching Rp8.37 trillion as per June 2010. This means that one Tri Polyta share equals to Rp3,590 Chandra Asri’s.

Disclosure: No position at the stock mentioned above.
 
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Tri Polyta to issue 2.33 bio new shares

Polypropylene maker PT Tri Polyta Indonesia Tbk (TPIA) plans to jack up its equity capital by issuing 2.33 billion new shares during a merger plan with PT Chandra Asri.
Based on a merger prospectus published today, Tri Polyta will issue 2.33 billion new shares to swap with 100% equity of Chandra Asri which is fairly valued at US$921.06 million or IDR8.37 trillion.
In return, 1 share of Tri Polyta equals to Rp3,590 per share. In June 2010, Tri Polyta's fair value of 100% equity was IDR2.61 trillion or Rp3,579 per share.
Based on valuation, 1 share of Chandra Asri will be converted with 42.660,50 shares of Tri Polyta.
The merger between Tri Polyta and Chandra Asri is estimated to generate a combined revenue amounting Rp17 trillion-Rp20 trillion per year along with US$1.5 billion (IDR13.35 trillion) assets.
After the merger, Tri Polyta will change its name into PT Chandra Asri Petrochemical Tbk.
Director and the Corporate Secretary of Tri Polyta Survandi said that such merger will not only grant certain financial benefits but also operational benefits.
“The vertical merger is expected to produce a synergy for both companies. The total asset generated from such merger may reach US$1.5 billion, of US$1.2 billion is Chandra Asri’s and the remaining US$280 million is Tri Polyta’s. We expect such merger to be effective by 1 January 2010,” he said.
After shares swap, PT Barito Pacific Tb (BRPT), parent company of Tri Polyta and Chandra Asri, will control 66.36%, Glazers & Putnam Investment Ltd owns22.87%, Marigold Resources Pte Ltd holds 5.52%, Prajogo Pangestu owns 1.04%, while Ibrahim Risjad, Henry Halim, and public shareholders hold 0.45%, 0.06%, and 3.70% respectively.

 

Disclosure: No position at the stock mentioned above.

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Chandra Asri & TPIA assets US$1.5 bio

The merger between PT Tri Polyta Indonesia Tbk (TPIA) and PT Chandra Asri is estimate to generate a combined revenue amounting Rp17 trillion-Rp20 trillion per year along with US$1.5 billion (Rp13.35 trillion) assets.

Director and the Corporate Secretary of Tri Polyta Survandi said that such merger will not only grant certain financial benefits but also operational benefits.
“The vertical merger is expected to produce a synergy for both companies. The total asset generated from such merger may reach US$1.5 billion, of US$1.2 billion is Chandra Asri’s and the remaining US$280 million is Tri Polyta’s. We expect such merger to be effective by 1 January 2010,” he said.
Referring to the company’s performance as per June 2010, the merger pf Tri Polyta, the maker of 360,000-ton polypropylene per year, and Chandra Asri, the producer of polypropylene, ethylene and polyethylene, may result in Rp17 trillion-Rp20 trillion total sale per year.
Tri Polyta, as he added, may book Rp5 trillion revenue per year, while Chandra Asri may post three times higher revenue than Tri Polyta.
With regard to gross profit, such joint venture controlled by PT Barito Pacific Tbk (BRPT), the holding company owned by Prajogo Pangestu, may generate Rp1.5 trillion gross profit.
“Tri Polyta may contribute Rp700 billion-Rp800 billion gross profit per year,” said Suryandi. Since 5 August 2008, Barito controlled 77.93% shares of Tri Polyta.
Barito also effectively controlled 70% shares of Chandra Asri in 13 December 2007. Based on Barito’s financial statement in 2009, the revenue contribution from the petrochemical business line may reach Rp14.27 trillion, while the company’s total revenue reached Rp14.39 trillion.
Chandra Asri’s Corporate Secretary, Suhat Miyarso, added the decision to hold a merger was established after undertaking a tight due diligence process.
“Such process has been done since July 2010. The due diligence process has also considered various kinds of aspects including the interest of the employees, creditors, shareholders and other stakeholders from both companies. One thing for sure, the detailed performance of Chandra Asril shall be revealed by today,” he said.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Today, Jakarta Composite Index (JCI) is predicted to show strengthening trend. However, profit-taking action is possible, which may weigh on the index since a number of shares are overbought.

Several securities companies gave their recommendation as following as reported by Bisnis.com today:

Trimegah Securities:Rebound in most bluechip shares became a catalyst for the JCI to move in the positive area after it dropped in the opening. The gain was led by mining sector, consumer goods and financial sector, with at least 2% increase. However, investors must be aware of high volatility in the market. The index today will move within the range of 3,353-3,421, with recommended shares are BBRI and UNVR.

eTrading Securities:JCI on Friday strengthened by 60 points to close at 3,397. Foreign investors made net buy as much as IDR475 billion, with ASII, banking and BUMI as the main drivers. Today the index is forecasted to extend the gain with resistance 1 around 3,405. It will move within the range of 3,360-3,420, with shares to watch are BBNI, BUMI, BRAU, and BBRI.

Sinarmas Sekuritas:Foreign investors in Indonesia Stock Exchange (IDX) successfully lifted the index to positive area. Net buying by foreign in the market last week was worth as much as IDR475 billion. Profit taking action by investors in today’s trading must be closely monitored, considering that most shares are in overbought area. The index is testing the resistance level at 3,418. Recommended shares: BMRI, BBNI, and BBRI.

Erdikha Sekuritas:JCI rose 60.43 points last week to close at 3,397.63 (1.81%). The gains of mining and banking sectors were the motor of the index. The investors should aware that the index will test the level at 2,400 and technically is prone to profit-taking action. The movement will be within the range of 3,320-3,420. Banking shares remain attractive.

Disclosure: No position at the stock mentioned above.

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Tri Polyta to buy US$1.2b Chandra Asri

PT Tri Polyta Indonesia Tbk (TPIA), the country's largest manufacturer of polypropylene resins, said on Saturday it will acquire petrochemical firm PT Chandra Asri in a share-swap deal worth about US$1.2 billion.

The combined companies, both of which are controlled by Indonesian tycoon Prajogo Pangestu through holding company PT Barito Pacific Tbk (BRPT), will create Indonesia's biggest listed petrochemical firm.

"We expect the deal to be completed by January 1 2011," Suryandi, a director at Tri Polyta, as quoted by Reuters on Saturday.

Barito Pacific owns 77.9% of Tri Polyta as well as 70% of Chandra Asri. Barito will own a 71.6 % stake of the combined firm after the deal.

Suryandi said Tri Polyta will issue 2.93 billion new shares to Chandra Asri's shareholders in exchange of the firm's US$1.2 billion assets.

He declined to give an indicative price for the new shares. A source close to the deal, who declined to be identified, said the company may offer the shares at Rp3,579, a 10% premium to the firm's closing price on Friday and valuing the deal at Rp10.5 trillion (US$1.17 billion). The company has appointed Deutsche Bank and Singapore's DBS Group.

No position at the stock mentioned above.

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Tri Polyta & Chandra Asri to merge

Two petrochemical companies PT Tri Polyta Indonesia Tbk (TPIA) and PT Chandra Asri, both controlled by Indonesian tycoon Prajogo Pangestu, aim to merger its business, paving a way to boost its efficiency as well as internal restructuring.  
A source familiar with the matter said the marger is advised by two stellar foreign investment banks Deutsche Bank and DBS.
"Tri Polyta will be a survival company. Chandra Asri may swap shares with Tri Polyta," the source told Insider Stories.
Since August 5 2008, PT Barito Pacific Tbk (BRPT), holding company of Prajogo, has controlled 77.93% stakes in Tri Polyta. Barito has controlled 70% stakes in Chandra since December 13 2007. 

Petrochemical business from both companies contributed Rp14.27 trillion or 99% of Barito's 2009 consolidated revenue of Rp14.39 trillion.
Barito President Director Loeki Sundjaja Putera confirmed that Tri Polyta and Chandra Asri are underway to merge. "It is correct the merger is being processed."
In the last 3 days, Tri Polyta stocks went up 25.83%, sending Rp2.37 trillion market capitalization, while Barito rose 9.56% in the last 2 days, boosting its market capitalization to Rp8.66 trillion. Tri Polyta rose 6.56% to Rp3,250 per share and Barito inched up 2.48% to Rp1,240 per share.

Disclosure: No position at the stock mentioned above.

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Shougang ties CS, JPMorgan buy BUMI

Two Chinese companies, one of them is dubbed Shougang International, are behind Credit Suisse (CS), and another creditor JPMorgan Chase Bank N.A. aim to participate non-preemptive rights of 7.06% stakes or 1.37 billion new shares to be issued by Indonesia's largest thermal coal producer PT Bumi Resources Tbk (BUMI).  
A source familiar with the matter said two other Bumi's creditors, China Investment Corporation (CIC), through its subsidiary Country Forest Limited, and Germany Raiffeisen Zentralbank Osterreich AG have considered not to participate the non-preemptive rights.
Based on previous formal announcement published late June, there were four creditors potentially took participation during the non-preemptive rights. Bumi planned to issue a maximum 10% of new shares or 1.94 billion new shares at Rp2,366 per share, resulting a total of US$495.89 million.
But, the source said Bumi will issue 7.06% new shares at Rp2,366 per share, resulting of Rp3.31 trillion or US$361 million during the non-preemptive rights.

Bumi plans to use the proceed to reduce its debts starting from US$800 million by the end of this year and another US$800 million debt reducing next year. 

According to BUMI Q1 2010 financial report, the company booked US$1.76 billion of debt to CIC, US$80.15 million of debt to Raiffeisen, US$291.37 million of debt to Credit Suisse, and US$145.93 million to JPMorgan Chase Bank. 

Rizal Gozali, President Director of PT Credit Suisse Securities Indonesia, didn't know anything about CS's possibility to participate Bumi corporate action.

Aldo Perkasa, fund manager at Danareksa Investment Management, said CIC might not need a direct equity investment in Bumi.

"I think CIC feels comfortable with high cost loan [19% IRR] at BUMI, hence it doesn't require to buy BUMI new shares," he said.  But, such corporate action will benefit Bumi, resulting a lower debt level.

Another stock trader said following BUMI's debt reduction, the company's rating might be possibly upgraded by rating agencies and brokerage houses.

"With a lower debt level, I believe that several foreign brokerage houses are ready to upgrade target prices for BUMI," he said.
A 8% surge on BUMI stocks on Friday, he said, was mainly boosted by accumulative buy from foreign brokerages.

Disclosure: No position at the stock mentioned above.

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BUMI to issue US$361 mio new shares

Indonesia's largest thermal coal producer PT Bumi Resources Tbk (BUMI) will issue 1.37 billion new shares or 7.06% stakes at IDR2.366 per share or US$361 million during non preemptive rights. The size is below a maximum target of 10% new shares as previously announced in late June.  

"Bumi will sell 7.06% new shares during non preemptive rights and list on October 5 2010," a source said.
In the previous formal statement, Bumi's four largest creditors might participate in non preemptive rights of maximum 10% of new shares or 1.94 billion shares worth US$495.89 million. 

They are Country Forest, wholly owned by China Investment Corporation (CIC), Raiffeisen Zentralbank Osterreich, Credit Suisse (CS), and JPMorgan Chase Bank N.A. In return, it will potentially shrink BUMI's debt from US$5.92 billion to US$5.44 billion. 

According to BUMI Q1 financial report, the company booked US$1.76 billion of debt to CIC, US$80.15 million of debt to Raiffeisen, US$291.37 million of debt to Credit Suisse, and US$145.93 million to JPMorgan Chase Bank.

Disclosure: No position at the stock mentioned above.

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Portside delays Rig Tenders acquisition

PT Rig Tenders Tbk (RIGS), Scomi Marine Services Pte Ltd, Portside Offshore Inc, and Grundtvig Marine Ptd Lte, have agreed to extend the validity period of the head agreement. 

Initially, those parties agreed to execute the head agreement in 6 weeks after the signing on July 12 2010. Referring to the latest agreement, those parties have agreed with 6 weeks extension up to October 18 2010 or up to the execute of the definitive agreement.

Based on the head agreement, Scomi Marine Services Pte Ltd, controlling share holder of 80.54% stakes in PT Rig Tenders Tbk (RIGS), aims to transfer its rights of shares in Rig Tenders to Portside Offshore Inc during rights issue. 

The proposed acquisition would potentially result a change of control in Rig Tenders. Portside, as Rig Tender's share holder, has committed to participate through rights issue whereby Portside will acquire the rights of 80.54% shares or equivalent to US$57.8 million from Scomi Marine Services. 

Portside will act as standby buyer of Rig Tenders' rights issue. By the end of March 2010, Scomi Marine owns 80.54% stakes or 490.59 million shares in Rig Tenders, UOB Kay Hian Private Limited holds 9.86%, and public holders hold the remaining shares. 

Considering the acquisition price, Portside will buy 80.54% stakes in Rig Tenders at US$0.117 per share or Rp1,064.35 per share.

Following Portside's acquisition, Rig Tender expects the deal will bring a positive value in the future. Based on the agreement, the deals will be subject to the completion of terms and conditions as agreed by all parties. 

In parallel with the proposed shares transfer, Rig Tenders also plans to acquire shares in CH Logistics Ltd, CH Ship Management Pte Ltd, Goldship Pte Ltd, Sea Master Pte Ltd, and PT Batuah Abadi Lines. 

The target companies own ships and has main business of vessels rental. The fleet consists of 51 vessels with contracts to provide coal transportation in Indonesia. 

The transactions are expected to provide a chance to Rig Tenders to access a raising energy business sector in Indonesia as well as to increase its profitability.

To acquire the target companies, Rig Tenders requires US$171.8 million of financing. In return, RIGS intends to hold rights issue with preemptive rights in a bid to raise US$71.8 million of capital, while US$100 million will be bankrolled by bank loan facility.

Disclosure: No position at the stock mentioned above.

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BTN to launch Rp750 billion ABS

Publicly listed state-owned PT Bank Tabungan Negara Tbk (BTN) is considering to launch Rp750 billion assets-backed securities (ABS) in October.

BTN Finance Director Saut Pardede told Insider Stories that the bank has mandated three underwriters to arrange the ABS issuance. They are PT Kresna Securities, PT Trimegah Securities Tbk, and PT Andalan Artha Advisindo Sekuritas.

"We have also pickes PT Sarana Multi Finance as arranger and fund manager PT Danareksa Sekuritas," he said.

Saut said the 5 year ABS will provide a coupon using benchmark of 25-100 bps above FR0051. BTN may jack up the size to Rp1 trillion when the demand is strong. 

Disclosure: No position at the stock mentioned above.

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Lautan Luas 1H net income falls 8%

Diversified chemical distributor company PT Lautan Luas Tbk (LTLS) booked a steady level of the sales revenue. It posyed Rp1.84 trillion. In US$ terms, the company's sales revenue increased 21% to US$200 million in 1H 2010 from US$165 million a year earlier.
In an investor newsletter recently issued,operating income decreased as a direct impact of the decline in gross profit to Rp81 billion from Rp97 billion in 1H 2009.
The company managed to maintain other operating expenses at the stable level. All in all, the total operating expenses in 1H 2010 were still in line with the period's inflation rate.
During 1H 2010, a foreign exchange gain of Rp24 billion contributed to net income. Lautan Luas adopted a hedging pplicy on its financial position to mitigate the effect of gross profit margin fluctuations resulting from te movements of rupiah againts US$.
Lautan Luas posted Rp45 billion net income in 1H 2010, a slight 8% decrease from Rp49 billion in 1H 2009, while EBITDA slightly increased 2% from Rp171 billion in 1H 2010 from Rp168 billion. 

Disclosure: No position at the stock mentioned above.

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No electricity tariff hike in 2011

Ministry of Energy and Mineral Resources (ESDM) and House Commission VII agreed not to increase the electricity tariff in 2011 on condition the subsidy amount in 2011 is matched with 2011 Draft State Budget and Financial Note.
The decision was taken at a meeting between Minister of Energy and Mineral Resources Darwin Zahedy Saleh and House Commission VII last night.
“There will be no hike in electricity tariff in 2011, and no additional subsidy for electricity in the next year,” Chairman of House Commission VII Teuku Riefky said while reporting the meeting result last night as reported Bisnis.com today. 

Yet, as he added, the agreement was reached on several conditions, including the financial statement of the last five years. Also, there shall be an explanation on the use of 8% margin given to PT Perusahaan Listrik Negara (Persero), the state owned electricity company.
Minister Darwin Zahedy Saleh welcomed the decision not to increase the electricity tariff by 2011.
“Government disagrees to increase the electricity tariff in 2011 State Budget Draft also to add to electricity subsidy which is IDR41.02 trillion as stated in 2011 Draft State Budget and Financial Note,” he confirmed.
Yet, as he informed, the government has proposed carry over of the 2009 electricity subsidy debt amounting IDR4.6 trillion and not to be given in 2011 in order to seal the deal.
Based on 2011 Draft State Budget and Financial Note, the government allocates electricity subsidy IDR41.02 trillion for next financial year, on the assumption of current electricity subsidy (2011) amounting IDR36.4 trillion, electricity subsidy debt in the fiscal year of 2009 as much as IDR4.6 trillion and the electricity hike as per 1 January 2011 as much as 15%.
With potential efficiency at PLN, government tends to propose carry-over of 2009 subsidy debt IDR4.6 trillion so that they will not increase the basic tariff and add to current electricity subsidy, Darwin said.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

All securities companies, as reported by Bisnis.com today, said they will still anticipate selling pressure through the weekend trading. Yet, will there be any opportunities and what stock are worth a close watch? Here are the recommendations: 

Trimegah Securities:
The yesterday's trading saw continued selling pressure, thus dragging down the Jakarta Composite Index (JCI) by 0.18% to 3,337.19. Today, the index is estimated to weaken again and move between 3,300-3,355 with the recommended shares like BISI and SGRO.
Panin Sekuritas:
Today, the selling pressure may slow down. Commodity and consumer goods stocks continue to lead the market transactions, possibly pushing the index to move in the range of 3,322-3,370.
Sinarmas Sekuritas:
Today the index may face some corrections after moving between 3,294-3,356. The recommended shares are BBRI, UNTR, and BBNI.
Erdikha Sekuritas:
JCI fell 6.15 points to 3,337.20 (-0.18%). The weakening global markets and the absence of activities at some Asian markets held back the index's movement which tended to move mixed. The negative performances of stocks of infrastructure and basic industrial sectors drove down the index. The index is potentially to move mixed today in the range of 3,300-3,380. The recommended stocks are BISI and BMRI.

Disclosure: No position at the stock mentioned above.

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OCBC NISP & OCBC Indonesia to merge

PT Bank OCBC NISP Tbk and PT Bank OCBC Indonesia is planning to merge, aiming at making operation more efficient and providing improved service to the costumers.
President Director OCBC NISP Parwati Surjaudaja said that the main purpose of combining two banks is to be a stronger financial institution with improved performance under the same shareholder, OCBC Group.
“Certainly, one of the purposes is to be a stronger institution. Also, to reduce the confusion of stakeholder that there are two banks with the same name,” she said as reported by Bisnis.com today.
She revealed the goal of the merger is that the management can give better services and more complete financial products.
In a formal statement, she explained that Bank OCBC NISP is a public company with 81.9% shares belonging to OCBC Bank Singapura.
Meawhile, PT Bank OCBC Indonesia is a limited company with 99% shares held by OCBC Bank Singapura and the remaining 1% held by Bank OCBC NISP.
After the merger finishes, both banks is planning to bring the name and logo of PT Bank OCBC NISP Tbk, meaning that Bank OCBC Indonesia is removed without any liquidation process.
“The process of merger will take effect after getting approval from the extraordinary meeting of shareholders, Capital Market and Financial Institution Supervisory Agency, Bank Indonesia, and Minister of Justice and Security that is expected to complete by January 1, 2011,” Parwati said.
Lo Nyen Khing, President Director and CEO Bank OCBC Indonesia, disclosed that after the synergy of both banks, the costumers of OCBC Indonesia will receive more benefits from service in 4,000 branch offices of OCBC NISP in 62 big cities in Indonesia, plus access to 37,000 ATM.

Disclosure: No position at the stock mentioned above.

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Summit Finance to issue Rp1 trio bonds

Multifinance company PT Summit Oto Finance today launches Rp1 trillion bond issuance plan. The bonds proceed will be used as working capital to support motorbike financing. 

Based on the bonds prospectus published today, Summit Finance has mandated three lead underwriters, PT DBS Vickers Securities Indonesia, PT HSBC Securities Indonesia, and PT Standard Chartered Securities Indonesia. 

Summit Finance has picked three underwriters PT DBS Vickers Securities Indonesia, PT HSBC Securities Indonesia, and PT Standard Chartered Securities Indonesia. 

 The bonds, consisting of four series A, B, C and D, are scheduled to be listed at Indonesia Stock Exchange on October 29 2010. A Series bond will mature in 370 days, B series in 2 years, C seris in 3 years, and D series in 4 years. 

The company booked Rp1.16 trillion revenue as of May 2010 and Rp301.66 billion net profit. 

Disclosure: No position at the stock mentioned above.

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Ades to buy US$5 mio cosmetic assets

Producer of mineral water Ades PT Akasha Wira International Tbk (ADES) announces a US$5 million or Rp45 billion acquisition of cosmetic production equipments owned by PT Damai Sejahtera Mulia (DMS).
Based on the acquisition prospectus submitted to Indonesia Stock Exchange, Akasha International will use internally generated cash to acquire the assets. The acquisition is categorized as material because the value is more than 50% of Akasha's total equity worth Rp68.2 billion as of December 31 2019.
Following the acquisition, Akasha International will expand its business from mineral water producer with cosmetic products.
Akasha International has obtained loan facility from PT Bank Internasional Indonesia Tbk (BII) on September 2 2010. The 5 year facility will provide 13% annual interest rate.

Disclosure: No position at the stock mentioned above.

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Aqua approved to be private company

Indonesia’s largest water company, PT Aqua Golden Missisippi Tbk (AQUA), during its extraordinary meeting of shareholders finally obtained approval to become go private company.
The yesterday's meeting was represented by 651,750 stocks or around 92.1% out of total stocks, 707,617.
Of 584,520 or 82.6% from the total stocks agreed such status changing.
However, nearly 17.4% of the shareholders refused such decision. The company priced its share at Rp500,000 per share.
“We are grateful that finally this go private notion has been approved,” said Aqua’s President Director Parmaningsih.
Aqua has repeatedly sought an approval form its minor shareholder merely to realize this go private plan since 2001.
The company also increased the offering stock price from Rp450,000 into Rp500,000 for encouraging the investors to release their shares.
Previously, around 94.35% of Aqua’s shares was controlled by PT Trita Investama and the remaining 5.65% belonged to public.
Responding to the growing objections from some of the shareholders with regard to this corporate action, Parmaningsih merely said that these stances are purely the rights of the shareholders.
She further added that in fact, Capital Market and Financial Institutions Supervisory Agency has approved this go private action. 

Disclosure: No position at the stock mentioned above.

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Astra Agro Augt. CPO output falls 0.8%

CPO production of publicly listed PT Astra Agro Lestari Tbk (AALI) for the period of January-August 2010 slightly fell 0.8% compared to the same period last year from previously 694,776 tons to 689,446 tons.
As reported in invetsor bulletin published by Astra Agro, the slightly decreased number was in line with better production of Astra Agro's CPO on monthly based.
In August 2010, AALI's CPO production reached 115,838 tons or a 5.8% increase compared to August production last year of 109,510 tons.
CPO average selling price for January-August 2010 increased 4.9% at the same period last year to Rp6,631 per kilo from previously Rp6,324 per kilo.

Disclosure: No position at the stock mentioned above.

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Pan Brothers to launch 1:4 stock split

PT Pan Brothers Tbk, publicly listed Indonesia-based textile company, plans to split its nominal stocks with 1:4 ratio, ballooning its equity from 1.78 billion shares from 445.44 million shares.
Director of Pan Brothers Fitri Ratnasari Hartono said that such corporate action aims to make the company’s stocks more liquid particularly with the higher volume of stocks.
At the moment, the face value of the company’s stock reached Rp100, while the market price has gone up 6.74% to Rp950.
“The company plans to hold the second right issue using the audited financial statement as per 30 June 2010 as well,” he said during the press announcement filed to Indonesia Stock Exchange today.
He further explained that the right issue shall become an action aiming to jack up the company’s basic capital. The right issue will be held along with the extraordinary shareholder meeting on 15 October 2010.
In order to realize the right issue, the company will use the audited-financial statement as per the first semester of 2010 to fulfill the requirement from the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK).
Such approval is absolutely needed before the company conducts the upcoming extraordinary shareholder meeting.
However, the company did not explain the relations between the rights issue and the preemptive rights issues as contained in the company’s loan agreement with PT Minna Padi Aset Management amounting Rp50 billion.
In the agreement, Pan Brothers agrees to use the five-year convertible bond as the warrant, if the company fails to settle this debt, then the company should conduct rights issues or preemptive rights issue and appointing Minna Padi as the ready buyer.
The company’s shareholders until the end of August consists of Darwin (11%), PT Trisetijo Manunggal Utama (22.79%), PT Garuda Sawit Utama (19.37%), UBS Securities Singapura Non-Treaty Omnibus (6.48%), and public (40.15%).

Disclosure: No position at the stock mentioned above.

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BUMA buys US$285 mio equipments

Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA) has purchased US$285 million heavy equipments from three suppliers, PT Hexindo Adiperkasa Tbk (HEXA), PT United Tractors Tbk (UNTR), and Caterpillar.
A source familiar with the matter said BUMA, wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID) has signed purchase orders of heavy equipments with three suppliers.
"We have signed US$40 million purchase from Hexindo, US$45 million from United Tractors, and US$200 million from Caterpillar. The heavy equipments will be delivered until 2012." the source told Insider Stories.
Delta Makmur Director Ariani Vidya Sofjan said several heavy equipment purchases are in line with the company's expansion growth until 2012.
"I have to check about the total purchases. But we will spend capital expenditure to underpin coal production expansion until 2012," she said.
Hexindo Corporate Secretary Heri Akhyar confirmed that the company has obtained purchase contract worth US$40 million from BUMA.
"We have signed the contract. One heavy equipment have been delivered to BUMA. The purchase is in line with BUMA's capital expenditure," he said.
Regarding to the purchase, Heri said, BUMA also obtains financing from Hitachi Construction Machinary Finance Indonesia.
"We haven't any information about the purchase order," said United Tractors Investor Relations Ari Setyawan.
BUMA spent US$115 million capital expenditure (capex) during the first 6 months of 2010, mostly attributed to the purchase of new heavy equipments to support production growth.
BUMA, wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), expects to spend approximately US$180 million of capex in 2010.
Bukit Makmur suffered a 41.5% drop (in term of IDR terms) in the first half's net profit.
The company's bottom line's drop was due to lower foreign exchange gains and higher interest cost in the first half of this year (1H 2010). But, in US$ terms, BUMA's net profit decreeased by 30% year on year (YoY).
Bukit Makmur posted IDR256 billion net profit in 1H 2010 from a year earlier of IDR438 billion. Net margin also fell to 10.5% YoY from 17.3%
Net revenue (excluding fuel costs) declined by 3% YoY to IDR2.45 trillion from IDR2.53 trillion, largely due to the strengthening of the Rupiah.
In US$ terms, however, BUMA's net revenue grew by 16% YoY to US$267 million, despite of relatively flat production growth, on the back of longer hauling distance (14% YoY) and contract re-pricing in 2010.
Bukit Makmur's operating profit abated 9.3% to IDR512 billion (YoY) from IDR564 billion. In return, the company's operating margin fell to 20.9% YoY from 22.3%.
Earning before interest, tax, depreciation, and amortization (EBITDA) decreased by 2% YoY to IDR954 billion in 1H 2010 from IDR974 billion.
In US$ terms, EBITDA grew 18% YoY to US$104 million, translating into an EBITDA margin to net revenue of 38.9% (38.5% in 1H 2009). Bukit Makmur's EBITDA margin rose to 38.9% YoY from 38,5%.

Disclosure: No position at the stock mentioned above.  

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Multistrada targeted to reach Rp520

PT Mandiri Sekuritas today releases a research report about tire maker PT Multistrada Arah Sarana Tbk (MASA).
In the report, the brokerage comes with buy recommendation and DCF-based share price target of Rp520, offering 48.6% upside. MASA now jumps 8.33% to Rp390 per share. 

"We estimate that the company's net profit to grow by 25% CAGR over the next 2 years on the back of strong domestic and exports market," the report said.
To meet strong demand and anticipate higher demand, the company will expand its production capacity to 28,500 per tire per day by 2012 compared with 14,200 in 2009.
"We expect that robust domestic automotive sales will lead to strong demand in tire replacement as around 70% of total Multistrada's tire sales come from replacement market," the report said.
By end 2010, outstanding cars in Indonesia may reach 19 million units with around 60 million of motorcycles. Gaikindo estimates that car sales will grew by 15.8% CAGR ober the next 5 years. MUltistrada plans to expand its passenger car radial (PCR) and motorcycle tire with total investment of US$182 million.
PCR tire production capacity is targetted to become 28,500 tire a day in 2012 from 14,000 tire/day by end 2009. Meanwhile, motorcycle tire capacity is aimed to rise to 16,000 tire a day in 2012 from 4,900 in 2009.
"We forecast its revenue will grow by 33.9% CAGR in the next 2 years to Rp3.7 trillion in 2012, generating Rp381 billion net profit in 2012 compared to Rp230 billion in 2009."
Multistrada booked 1H 2010 revenue of Rp1 trillion (+23% yoy) and net profit at Rp89 billion due to 18.9% yoy increase in PCR tire sales volume. 

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Garuda Indonesia IPO might delays

State-owned airlines company PT Garuda Indonesia seems unable to enroll Indonesia's stock market this year because it should settle two major problems which could hamper initial public offering (IPO).

Unnamed source at Garuda, as reported by Kontan daily, said two main problems are debt restructuring with export credit agency. The debt restructuring might be signed in October. 

Another problem is auditor Deloitte Indonesia might complete the audit on Garuda in November, resulting stock valuation.

"Deloitte requires more time to verify every asset of Garuda. It needs more time. Hence, it is difficult for Deloitte to meet the target provided by State-Owned Enterprises Ministry in September," the source said.

But, Garuda President Director Emirsyah Satar said the company strives to exercise IPO this year.

Disclosure: No position at the stock mentioned above.

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BW Plantation bonds obtain A rating

PT Pemeringkat Efek Indonesia (Pefindo) affirmed A rating for the bonds of PT BW Plantation Tbk series I/2010 worth Rp700 billion to be issued this year. 

For the company profile, Pefindo also assigned the similar rating for the Indonesia’s crude palm oil (CPO) producer.
Two analysts at Pefindo Doni Kuswantoro and Niken Indriarsih said that such rating reflects the strong operational management of the company, robust cash inflow protection, and impressive plantation profile.
“The rating’s prospectus is stable. Yet, the rating is still limited by BWPT’s aggressive financial policy as well as the exposure on the fluctuate price commodity and the bad weather,” he said through the press release today.
BW Plantation was established in 2000 and has owned and managed 96,175 hectare areas as per June 2010.
The area consists of 46.048 area of palm oil plantation and the remaining 50,127 areas were unexploited.
At the moment, the company owns crude palm oil processing plants that are located in Central Kalimantan. The CPO producer has added 9,700 hectare of new areas until the end of July.
The company expects to expand 10,500 hectare of new area this year. The company provides US$75 million of capital expenditure in which around US$25 million has been spent. 

Disclosure: No position at the stock mentioned above.  

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ATPK Resources to sell 10% new shares

Publicly listed PT ATPK Resources Tbk today announces non-preemptive rights of a maximum of 83.12 million shares or 10% stakes at Rp200 per share worth Rp16.62 billion in 2 years.
In a public announcement today, the company will seek approval from its shareholders in a bid to hold non-preemptive rights via extraordinary general meering scheduled on October 5 2010.
ATPK Resources said non-preemptive rights is estimated to attract new investor. The company also plans to use the proceed to pay debts and hopes to increase stocks liquidity.

Disclosure: No position at the stock mentioned above.

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Bank Mandiri picks 4 foreign banks

PT Bank Mandiri Tbk (BMRI) has finally mandated four international selling agents for rights issue. 

A source familiar with the matter said Bank Mandiri has appointed Bank of America-Merrill Lynch, Citi, CLSA, and Deutsche Bank.
"The banks have signed agreement with Bank Mandiri today," the source said.
The bank has picked two local houses PT Danareksa Sekuritas and PT Mandiri Sekuritas to arrange rights issue.
Bank Mandiri Finance Director Pahala Mansyuri confirmed that the company has mandated Deutsche Bank and Bank of America Merrill Lynch as joint global coordinator. Bank Mandiri has also appointed Citi and CLSA as joint book runner.
Bank Mandiri previously revealed that they aim to raise Rp13 trillion-Rp14 trillion from the rights issue planned for December 2010.
 

Disclosure: No position at the stock mentioned above.
 
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Hexindo bags US$40m order from BUMA

Hitachi heavy equipment distributor PT Hexindo Adiperkasa Tbk (HEXA) has secured US$40 million contract of heavy equipment purchase from Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA).

A source familiar with the matter said BUMA has signed contracts of heavy equipment purchase with Hexindo.

"Hexindo will deliver heavy equipments to BUMA up to 2012," the source told Insider Stories today.

Hexindo Corporate Secretary Heri Akhyar confirmed that the company has obtained purchase contract from BUMA. "We have signed the contract. One heavy equipment have been delivered to BUMA. The purchase is in line with BUMA's capital expenditure," he said.

Regarding to the purchase, Heri said, BUMA also obtains financing from Hitachi Construction Machinary Finance Indonesia.

BUMA spent US$115 million capital expenditure (capex) during the first 6 months of 2010, mostly attributed to the purchase of new heavy equipments to support production growth. 

BUMA, wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), expects to spend approximately US$180 million of capex in 2010.

Delta Makmur Director Ariani Vidya Sofjan said heavy equipments purchase is in line with the company's expansion growth until 2012.

"I have to check about the purchase from Hexindo to BUMA. But, we plan to spend capex to buy heavy equipments to underpin business expansion," she said.

Hexindo posted a 118.20% jump in the first quarter's net profit of this year on the back of soaring net revenue.

The company booked US$9.23 million net profit in 1Q 2010 from US$4.23 million in 1Q 2009. Operating income rose 115.92% from US$5.78 million in 1Q 2009 to US$12.48 million. Net revenue surged 132.35% from US$53.17 million in 1Q 2009 to US$123.54 million.

Hexindo stocks slips 1.75% to IDR5,600 per share with market capitalization of IDR4.70 trillion. The stocks are traded at 13,58 fold price to earning ratio.

Disclosure: No position at the stock mentioned above. 

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Elnusa seals US$24.48 mio new contract

Integrated oil and gas services provider PT Elnusa Tbk (ELSA) has secured contract of transition seismic acquisition project worth US$24.48 million.
In an official statement filed to Indonesia Stock Exchange (IDX) today, the project will be applied at two blocks in West Papua for 6 months starting from September 2010 to early 2011.
The company will implement the new contract through a joint operation with French company. Elnusa enrolled offshore seismic market in 2005 in a bid to expand business in upstream.
"In 2010, contribution from business of transition zone and marine seismic increases. During the first half, transition zone and marine seismic contributed US$89 million to Geoscience Services Division," said Elnusa Corporate Secretary Heru Samodra.  

Disclosure: No position at the stock mentioned above.

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Dayaindo secures Rp1 trio banks loan

PT Dayaindo Resources International Tbk (KARK) has secured Rp1 trillion loan facilities from 3 banks. The loan will be used by Dayaindo to acquire PT Belang Belang Coal Terminal which requires Rp1.5 trillion financing.

Dayaindo Corporate Secretary Endang Wijaya, as quoted by Kontan daily today, said the company has internally cash of Rp611 billion from rights issue.

Dayaindo is also considering to develop terminal in Mamuju, North Sulawesi which requires a total investment of Rp1.3 trillion. Contractor PT China Harbour Indonesia has been appointed to build the terminal.

Disclosure: No position at the stock mentioned above.

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Bank Bukopin picks CIMB Securities

PT Bank Bukopin Tbk (BBKP) has mandated PT CIMB Niaga Securities as financial adviser of the bank's rights issue scheduled at the end of this year.

Bank Bukopin is also eyeing to jack up shares issue to 50% of the outstanding from previously of 30%. Bank Bukopin President Director Glen Glenardi said the bank has picked CIMB Securities as financial adviser for the rights issue.

"We try to complete audit of financial statement scheduled after Idul Fitri," he said as reported Bisnis Indonesia today.

 
Disclosure: No position at the stock mentioned above.
 
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Bank Mandiri names Deutsche & CLSA?

PT Bank Mandiri Tbk (BMRI) has mandated Deutsche Bank and CLSA as lead managers for its secondary offering. 

In a morning notes published by Kim Eng Securities today, Bank Mandiri had already selected Mandiri Sekuritas and Danareksa Sekuritas to be the local underwriters.

Bank Mandiri previously revealed that they aim to raise Rp13 trillion-Rp14 trillion from the rights issue planned for December 2010.

Kim Eng said it is  positive on the rights issue plan as it is expected to increase the bank’s freefloat to 40% and make it eligible for 5% tax discount from 2011 onwards.

"We recommend hold for Bank Mandiri with target price at Rp7,300 per share [14.6x 2011F PER, 2.9x 2011F PBV]," the notes said. 

Disclosure: No position at the stock mentioned above.

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Multistrada sets US$129 mio capex

Publicly listed PT Multistrada Arah Sarana Tbk, Arcilles, Corsa and Strada-brand tire producer, provides US$129.5 million over the next 2 years to extend its production capacity.
The company management on its press statement this afternoon explained that the amount of the capital expenditure excludes the routine capital expenditure reaching US$55.5 million.
The company has secured 5 year syndicated loan facilities from several banks such as Bank International Indonesia, Bank CIMB Niaga, and HSBC amounting US$143 million. Apparently, Unicredit AG Jerman had also granted 6 year loan valuing US$42 million.
The tire capacity expansion will cover the tires used in the passenger car and motorcycle. The expansion plan shall be divided into two phases, the first phase to be completed in December 2010 and second phase to be finished by the end of the first half of 2010.
During the first phase, the company plans to jack up the tire production of passenger cars up to 22,500 tires per day as it will also foster the production of motorcycle tires into 16,000 tires per day.
For the second phase, the company expects to further improve the production of car tires into 28,500 tires per day while it maintains the production of the motorcycle tires at 16,000 tires per day.
At the moment, the company’s production capacity reaches 17,500 tires per day of 70%-80% is exported to more than 60 destination countries.
Meanwhile, for the motorcycle tires, the production reached 8,000 tires per day. The motorcycle production was fully allocated to the domestic market.
“The company chose to conduct expansion following the increasing demand of export particularly from US as one of our main destination country. At present, US imposes import duty for any Chinese tires,” said Even, Head of Investor Relations PT Multistrada Arah Sarana Tbk.

Disclosure: No position at the stock mentioned above.  

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Moody's confirms BUMI rating at Ba3

Moody's Investors Service has today confirmed its Ba3 corporate family rating on PT Bumi Resources Tbk (Bumi) and on the senior secured bond issued by Bumi Capital Pte Ltd, which is wholly owned and guaranteed by Bumi. The outlook on the ratings is negative.
This action closes the review for possible downgrade which was initiated on 14th May 2010.
"The confirmation reflects Moody's expectation that Bumi will arrange sufficient funding to address its very near term refinancing requirements and that its underlying performance will show gradual improvement," says Laura Acres, a Moody's Vice President and Senior Credit Officer, in a press statement today.
The Ba3 rating also reflects Bumi's majority ownership in two of Indonesia's largest thermal coal mines, PT Kaltim Prima Coal and PT Arutmin Indonesia.
Both mines have long reserve lives and well established operations with a track record of consistent production growth.
While the holdco debt burden is high, the position is partially ameliorated by the low leverage at the coal mines and the cash flows they generate.
These cash flows are caught under Bumi's cash distribution agreements and as such provide some protections to creditors as regards debt service, however, final repayment risk continues to lie with the holdco.
"The negative outlook reflects ongoing refinancing risk at the holdco level over the next 12 months [assuming all puts are exercised], although Moody's notes the committed facilities in place to cover near term maturities, specifically those in Q4 2010," said Acres.
The negative outlook also reflects the extent to which Bumi's performance, despite improvement, is below its projections, particularly in terms of normalized, consolidated adjusted debt/EBITDA which stood at 3.9x on an LTM basis and was above the downward trigger of 3.0x.
"Given underlying improved performance at the coal companies in 1H 2010, together with plans to raise US$350-US$400 million through the pre-emptive rights issue, the proceeds of which will be deployed towards debt repayment.
It is Moody's expectation that debt/EBITDA could fall to 3.0x-3.3x for FY 2010, which is still considered high for Ba3 rating," said Acres, also Moody's Lead Analyst for Bumi.
Upward rating pressure is unlikely given the negative outlook.
The outlook could revert to stable should Bumi deliver on its financial projections and offer a clear plan to reduce the debt burden such that adjusted, consolidated, debt/EBITDA falls below 3.0x on a consistent basis.
Further downward pressure could emerge on the rating should Bumi fail to deal convincingly with its debt maturity profile over the next 12 months such that it refinances facilities with other short-term lines.
Moody's would also be concerned if production at the coal companies faltered such that Bumi was unable to deliver on its projections and specifically its deleveraging plans or if it deviates from the business plan and strategy currently contemplated as part of the rating.
Moody's would also look for holdco leverage to decrease and failure to do so would put downward pressure on the rating.
The last rating action was taken on 14th May 2010 when Bumi's ratings were placed under review for possible downgrade following worse than expected financial performance and eroding headroom under covenants. 

Disclosure: No position at the stock mentioned above.

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Bukit Mutiara pledges 18.77% Berau

PT Bukit Mutiara, controlling shareholder of coal producer PT Berau Coal Energy Tbk (BRAU), has secured US$50 million loan from Avenue Luxembourg S.A.R.L.

In Berau Coal IPO prospectus submitted to Indonesia Stock Exchange (IDX), to secure the loan facility, Bukit Mutiara has pledged 18.77% stakes in Berau Energy to Avenue at a minimum value of 2 times of the loan.

Bukit Mutiara is also in talks with Avenue in a bid to obtain additional loan facilities and provide more shares to pledge.

Bukit Mutiara controls 90.257% stakes in Berau Energy, PT Bentara Energi Asia holds 0.001% stakes, and public holders own 9,742% stakes. 

Berau Energy offloaded 3.4 billion shares, 9.742% of its total outstanding 31.5 billion shares, into the primary market at Rp400 per share.
From the 3.40 billion shares, 70% was allocated for local and foreign investor institutions while the rest was allocated for individual investors. 

From the IPO for about Rp400 per share, 1.36 trillion of cash will be used for capital expenditure and Maple Holdings Ltd acquisition through Seacoast Offshore Inc, Berau subsidiary. 

Maple, subsidiary of Regulus International Pte Ltd, will hold the marketing rights of PT Berau Coal, Berau Energy subsidiary business. Regulus owned by Bukit Mutiara, parent of Berau Energy, managed by PT Recapital Advisors.

Disclosure: No position at the stock mentioned above.  

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Wilianto Ie joins Nomura Holdings

Nomura, the global investment bank, today announces the appointment of Wilianto Ie to the newly-created role of Head of Research, Indonesia, as the firm further expands its already strong research capabilities in Southeast Asia.

Wilianto will be responsible for building Nomura’s Indonesia-based research team and for providing overall Indonesia market strategy, reporting to Jitsoon Lim, Head of Equity Research, Southeast Asia.

Nomura’s new Indonesia research team will be supported by regional analysts based out of Singapore and Hong Kong, who already provide the firm’s clients with coverage of Indonesia’s macro-economy, as well as four Indonesian sectors; banking, plantations, telcos and utilities.

“We are very excited about Wilianto joining Nomura in Indonesia. With his extensive experience and track record we believe he will build a top-rated Indonesian research franchise for our clients, which will complement our existing coverage of ASEAN,” said Jitsoon Lim in a press release.

Wilianto has over 15 years of experience in Indonesian equity research. He joins Nomura from CLSA Indonesia where he was a senior analyst covering the plantation sector in ASEAN and the Automotive sector, prior to which he was Head of Research at Kim Eng Securities Indonesia.

Wilianto was also previously a senior analyst at Indosuez WI Carr Securities Indonesia and Standard Chartered Securities Indonesia, respectively.

He holds an MBA from Pittsburg State University. Commenting on the appointment, Atsuyoshi Aoyagi, Nomura’s Head of Equities, Southeast Asia Wilianto's appointment is an important first step in building Nomura’s comprehensive equities coverage of the Indonesian market for global investors.  

Disclosure: No position at the stock mentioned above. 

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Jasa Marga sets 8.75%-9.95% coupon

Publicly listed toll road operator PT Jasa Marga Tbk sets 8.75%-9.95% coupon for its Rp1 trillion bond out of Rp1.5 trillion the total issued bond.

Head of Syariah Finance PT Mandiri Sekurtitas Syafei saidt hat the coupon was set along with 8.5%-9.9% yield for the Rp500 billion zero coupon bonds.
“Jasa Marga’s bond XIV series JM-10 poses the fixed rate maturing over the next 10 years and will be paid once in every three months. The range is between 8.75% and 9.95%,” he said as reported by Bisnis.com today.

Nonetheless, Jasa Marga’s President Director Frans S. Sunito also expressed his optimism that the bond will be well absorbed by market considering the company’s impressive track record.
About 43% fund generated from the bond issuance will be used to settle the matured bond while the remaining 27% will be allocated for the investment credit.
“Around 25% will be exploited to develop our business line in the non-toll sector, while the remaining 5% used to finance our working capital,” said Frans. 

Disclosure: No position at the stock mentioned above.

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Petrosea plans to hold 1:5 stock split

Coal mining contractor PT Petrosea Tbk (PTRO), subsidiary of PT Indika Energy Tbk (INDY), plans to split its stocks with the ratio of 1:5.

A source familiar with the matter said the company plans to split its stocks before exercising secondary public offering following majority acquisition of Petrosea. Petrosea schedules an extraordinary general meeting on October 21 2010 with main agenda of stock split. 

"After stock split, Petrosea consider to refload 20%-25% stakes into the primary market," the source said.

Disclosure: No position at the stock mentioned above.

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Matahari considers to sell Hypermart

After disposing PT Matahari Department Store Tbk (LPPF), retailer PT Matahari Putra Prima Tbk (MPPA), controlled by Lippo Group and majority owned by Riady family, considers to dispose its hypermarket business dubbed Hypermart in a bid to develop core business.
In a press statement submitted to Indonesia Stock Exchange on Friday, Matahari Putra Prima has mandated Merrill Lynch (Singapore) Pte Ltd to hold a comprehensive strategic analysis toward its business. In Return, Merrill Lynch will provide a major recommendation about the business.
The company plans to optimize its value by considering business unit disposal, acquisition of other companies, financing through loan or equity, restructuring, or business unit spin-off, and strategic alliances.
Matahari President Director Benjamin Mailool said as pioneer in the hypermarket segment in Indonesia, the retailer will focus on ritel business. Its hypermarket business grew 25.8% in 2009 and 18.2% as of May 2010 year on year.
Matahari Putra Prima estimates that its food business, managing Hypermart and Foodmart, will reach Rp7.5 trillion total sales and Rp9.8 trillion in 2010 and 2011 with Rp400 billion and Rp620 billion EBITDA.
The company operates 50 hypermarket, 25 supermarket, and 53 pharmacy stores, and 90 family entertainment centers, 18 internationally book stories, and 91 department stories in Indonesia as of June 2010.    

Disclosure: No position at the stock mentioned above.

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Arpeni Ocean extends interest payment

Shipping company PT Arpeni Pratama Ocean Line Tbk (APOL) announced to extend the 10th payment of bond interest worth Rp25.16 billion maturing on September 17 2010.
In a public announcement filed to Indonesia Stock Exchange, Arpeni Corporate Secretary Ronald Nangoi said the company is preparing to fulfill the money for interest payment.
"We will meet our obligation to pay the interest at a maximum date on September 30 2010.

Disclosure: No position at the stock mentioned above.

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Harum Energy cuts IPO to Rp2.6 trillion

Coal mining producer PT Harum Energy Tbk determined to downsize 150 million shares of the IPO size and set the final price at Rp5,200 per share.

A source familiar with the matter said Harum Energy may downsize the size from initial 650 million shares to 500 million shares.

"Considering the IPO price at Rp5,200 per share, Harum Energy may snap up Rp2.60 trillion cash from IPO," the source said.   

The company set targets to be listed in the exchange on 6 October. In that corporate action, the company will be assisted by two underwriters namely PT Ciptadana Securities dan PT Mandiri Sekuritas.

Two global selling agents for Harum Energy IPO are Deutsche Bank and Goldman Sachs. 

The source said investor should ask about the downsize to Goldman. "Goldman offered more shares during the IPO than the other underwriters. Investor could ask to Goldman about the possible downsize," the source said.

Previously, Harum Energy and the IPO underwriters offered the shares at IDR5,000-Rp6,300, enabling it to grab Rp3.25 trillion-Rp4.09 trillion.

In the IPO, PT Karunia Bara Perkasa (KBP) as the major shareholders will sell its shares up to 450 million. The rest of shares, i.e. 200 million, are new shares.

Mobile phone of President Director Ciptadana Securities Ferry Budiman Tanja is unable to be reached, while Harum Energy President Director Ray A. Gunara always doesn't want to respond.

Disclosure: No position at the stock mentioned above.

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