Best & worst performing stocks in 2010

Through the year 2010, a company posted more than 1,000% gain while another one plunged almost 90%. Let’s see the shares with the best and the worst performance this year as reported by Bisnis.com today.

The top 10 best performing stocks in 2010:
1. Pan Brothers (PBRX) recorded gain 1.189,29%.

2. Modern Internasional (MDRN) recorded gain 868,75%.

3. Eatertainment Internasional (SMMT) recorded gain 866,67%.

4. Inovisi Infracom (INVS) recorded gain 816,67%.

5. Indomobil Sukses International (IMAS) recorded gain 783,72%.

6. Indospring (INDS) recorded gain 740%.

7. Bumi Teknokultura (BTEK) recorded gain 695,45%.

8. Indosiar Karya Media (IDKM) recorded gain 620,72%.

9. Resource Alam Indonesia (KKGI) recorded gain 572,73%.

10. Indocitra Finance (INCF) recorded gain 515%.

The top 10 worst performing stocks in 2010:
1. Katarina Utama (RINA) recorded loss 43,86%.

2. Perdana Karya (PKPK) recorded loss 43,87%.

3. Triwira Instan Lestari (TRIL) recorded loss 44,35%.

4. Dayaindo Resources (KARK) recorded loss 55,75%.

5. Indonesia Prima Property (OMRE) recorded loss 57,50%.

6. Itamaraya (ITMA) recorded loss 61,50%.

7. Cowell Development (COWL) recorded loss 65,14%.

8. Colorpak Indonesia (CLPI) recorded loss 79,34%.

9. Kertas Basuki Rachmad (KBRI) recorded loss 84,84%.

10. Intikeramik Alamasri Industry (IKAI) recorded loss 86,84%.

Disclosure: No position at the stock mentioned above. 

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Modern injects Rp100 bio into 7-Eleven

PT Modern Internasional Tbk jacks up capital in its subsidiary, PT Modern Putra Indonesia, by Rp100 billion to Rp199 billion.
Directors Modern Internasional Henri Honoris and Donny Sutanto in a disclosure to Indonesia Stock Exchange yesterday said that the capital of its unit has also boosted to Rp300 billion from Rp100 billion.
They explained that the increase in equity placement was aimed to support the unit in developing and operating the convenience store chain 7-Eleven in Java Island as the master franchise for the chain store has been approved for 20 years with 10-year extension.
“Moreover, the capital injection is aimed to strengthen the capital of the unit,” they said.
Jakarta-based Modern Putra Indonesia, which was established in 1988, runs the business of general trade. The minority shareholder of the unit is PT Honoris Industry.
Initially, Modern Putra developed Fuji Image Plaza outlets and since November 2009, it has been developing and operating 7-Eleven convenience store
7-Eleven convenience store sells fast food, beverages and retail products. Next year, the management expects to open 36 stores.
Henri explained that one company strategy is to convert Fuji Image Plaza by combining the photography product store with 7-Eleven.
For the last three years, the number of Fuji Image Plaza outlets has been drastically decreased. There were 117 outlets for photo printing in 2008, decreasing to 90 in 2009 and there left only 82 outlets in September 2010. Meanwhile, through December 30, 2010, the number of 7-Eleven outlets has increased to 20 stores.

Disclosure: No position at the stock mentioned above.  

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SCTV acquires Bangka Tele Vision

TV station PT Surya Citra Televisi (SCTV), a wholly owned subsidiary of PT Surya Citra Media Tbk (SCMA), controlled by Indonesian businessman Sariaatmadja family, reported an acquisition of 85% shareholding in PT Bangka Tele Vision at Rp425 million.
Surya Citra Media Corporate Secretary Hardijanto Saroso said Surya Citra Televisi purchased Bangka Tele Vision from two previous shareholders namely PT Kuda Persada Sakti and PT Indonesia Network Information.
However, he didn't disclose what is the next strategy to develop Bangka Tele Vision.

Disclosure: No position at the stock mentioned above.  

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Bhakti bags Rp510 bio from CMNP sale

Slow but sure, holding investment PT Bhakti Investama Tbk (BHIT) disposes its shareholding in toll road operator PT Citra Marga Nusaphala Persada Tbk (CMNP) on December 27 2010.
After selling its stakes in Citra Marga into the market, Bhakti, controlled by Indonesian tycoon Hary Tenoesoedibjo, today announced a 12.16% stake or 243.17 million shares disposal in Citra Marga at Rp2,100 per share, enabling Bhakti to bag Rp510.66 billion cash.
Bhakti Director Darma Putra, in a public statement to Indonesia Stock Exchange, (IDX) said the company sold Citra Marga as it required to adjust portfolio. He didn't declare who is buyer for the bulk of Citra Marga stake. Post disposal, Bhakti's shareholding shrinks to 3.6%.   

Previously, Hary Tenoe revealed that Bhakti is no intention to put Citra Marga for sale, despite his 'battle' with another shareholder, Siti Hardiyanti Rukmana known as Mbak Tutut, daughter of former President Soeharto, regarding to shares holding in television company TPI (now changed to MNC TV). In the management of Citra Marga, Hary Tenoe is unable to put his men. Harry Tanoe is unreachable for further comment relation to the proposed shares sale.

Disclosure: No position at the stock mentioned above.  

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Beyond Media boosts stake in Mahaka

PT Beyond Media, controlling shareholder or PT Mahaka Media Tbk (ABBA), has enlarged shareholding by pursharing 93.49 million shares in the market.
In an official statement submitted to Indonesia Stock Exchange recently, Beyond Media bought the shares at IDR95 per share, representing IDR8.88 billion during on December 22 2010.
Beyond Media intended to put more investment in Mahaka Media. Post shares purchase, Beyond Media remains a controlling shareholder in Mahaka Media by holding 1.66 billion shares or 60.28%.

Disclosure: No position at the stock mentioned above.
 
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Bank Agro plans rights issue in 2011

PT Bank Agroniaga Tbk (Bank Agro) aims to hold rights issue in 2011 in a bid to strengthen capital structure, a local media namely Investor Daily reported today.

"There is a commitment from shareholders to inject capital into Bank Agro. As a publicly listed company, it might be done via rights issue," said Bank Agro's Corporate Secretary Hirawan Nur Kustono today.

According to Hirawan, Indonesia's largest lender in microfinance financing PT Bank Rakyat Indonesia Tbk (BBRI) as Bank Agro shareholder, is ready to boost capital.

BBRI acquired 88.65% shareholding in Bank Agro at Rp330.2 billion or Rp109 per share from seller Dana Pensiun Perkebunan.

Disclosure: No position at the stock mentioned above.

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Adhi Karya seals Rp8.1 contracts in 2010

PT Adhi Karya Tbk (ADHI), a state-owned contractor, has secured Rp8.1 trillion new contract, enabling the company to meet its target this year.
Meanwhile, by next year, the contractor targets to achieve a contract growth by 20% of that in this year.
Corporate Secretary of Adhi Karya Kurnadi Gularso confirmed that the contract gains came from various projects, while last year’s carry over project had contributed Rp5.7 trillion.
The contractor won several large-scaled projects as an engineering, procurement, and construction project (EPC) of Balikpapan Steam Water plant with 2x100 MW capacity valued Rp2.3trillion, and Tanjung Selor, Kalimantan-based Steam Power Plant having 2x7 MW capacity with contract total of Rp268 billion.
Others were a construction of Education and Training Centre as well as State-Owned Athletics School in Hambalang-Sentul, West java with total contract value of Rp1 trillion. Adhi Karya is also awarded Rp900 billion contracts on building constrution.
In infrastructure sector, several large-scaled projects handled by Adhi Karya were constructions of Teluk Lamong Port by Rp401 billion, Terminal 3 apron of Soekarno-Hatta Airport with Rp156 billion contract value, and first stage of fly over with Kampung Melayu-Tanah Abang route: Sudirman-Casablanca route by Rp214 billion.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Indonesian stocks benchmark is predicted to reach 3,700 psychological level at the end of this year. Yet, the minimum transaction volume will make the strengthening of the index tends to be limited. Shares that may be considered for today's trading are JMSR, ANTM, BBNI and KRAS. Here is the recommendation as reported by Bisnis.com today:

e-Trading Securities:
As today is the last trading day in 2010, JCI is predicted to gain amid to the ongoing window dressing. It might move between 3,660–3,750 with JSMR, KRAS and BMRI as the recommendation.
At yesterday trading, the index closed rose 39 points or 1,07% to 3,699.21 with smaller intraday transaction volume than the previous day.

Reliance Securities:
For today’s opening index is estimated to move within 3,689 – 3,713 with BBRI, BDMN, LSIP, ANTM, DOID, and KRAS as the preferred one. JCI is possibly to end last trading day this yeat with a positive record to 3,700 psychological level.
The hiking price on gold and crude oil yesterday helped to boost most of Asian indexes, including JCI. Capital inflow into the stock market is still quite good. Foreign investors was successfully booked IDR132 billion net sell, yesterday.

Erdikha Sekuritas:
Index is projected to slightly fluctuate and move between 3,650 – 3,730 with BBNI, JSMR, and MAPI as the recommended shares. Strengthening index on yesterday trading was particularly influenced by positive movement in global markets and a better crude oil prices.

Sinar Mas Sekuritas:
Jakarta Composite Index was closed lifted 39,2 points to 3699,21 yesterday. Thus, for today it is potentially to keep on gaining and move between 3659-3730. JCI might collect with positive sentiment from window dressing from U.S, Europe and Asian markets. Shares that might be observed are JSMR, SMCB, ICBP, and KRAS. 

Disclosure: No position at the stock mentioned above. 

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Bayan targets 12 million tons coal sales

PT Bayan Resouces Tbk (BYAN) is targeting coal sales for 2010 of about 12 million tons and nearly US$1 billion revenue. In a public announcement submitted by Kangaroo Resources Ltd to Australia Stock Exchange today, Bayan Resources is also targeting US$150 million EBITDA.

Bayan Resources, in a presentation material, calculates that production volume in 2010 is calculated to increase from 11.4 million metric tons in 2009 to 13.8 million metric tons-Rp15.1 million metric tons. Demand coming from India, Taiwan, and Malaysia are calculated to increase.

The company's average cash cost in 2010 is around US$55-US$60 per metric ton. Gunung Bayan Pratamavoal Block 1's production is set to increase to 0.4 million metric tons-0.5 million metric tons.

Gunungbayan Pratamacoal Block II seems to decrease from 4 million metric tons to 3.5 million metric tons. PT Teguh Sinarabadi's production will be stagnant at 1 million metric tons-1.1 million metric tons. 

PT Firman Ketau Perkasa is also stagnant at 0.3 million metric tons-0.4 million metric tons. PT Perkasa Inakakerta's production forecast this year will be 2.8 million metric tons-3 million metric tons from last year's position of 2 million metric tons.
PT Fajar Sakti Prima is set to boost production to 1.3 million metric tons-1.6 million metric tons  in 2010 and PT Wahana Baratama Mining will elevate production to 4.5 million metric tons-5 million metric tons in 2010 from 2.9 million metric tons in 2009. 

Disclosure: No position at the stock mentioned above. 

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Sidomulyo Selaras sets 30% IPO in 2011

PT Sidomulyo Selaras, a company engaged in the business of freight transportation services of toxic chemicals plans to dispose 30% of its stock through an initial public offering (IPO).
Director of Indonesia Stock Exchange (IDX) Eddy Sugito said the prime target of listing of shares on the stock exchange by Sidomulyo Selaras is expected take place in the first quarter of 2011.
"This transportion of toxic chemicals company said that they are planning an IPO next year," said Eddy Sugito to press in the middle of PT Mitra Multifiling Indonesia Tbk’s initial listing ceremony, today.
Acting as an underwriter of the IPO that is PT Makinta Securities.
Based on the information, Sidomulyo Selaras founded in 1986 by Sasminto Tjoe. The company has a core business in logistics and transportation.

Disclosure: No position at the stock mentioned above.

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PTPP acquires Sepoetih Daya Prima

The national construction and state-owned company PT Pembangunan Perumahan (Persero) Tbk (PTPP) has acquired 49% of PT Sepoetih Daya Prima shares, the owner of a 2x7 mega watt (MW) and 2x30 MW power plant (PLTU) in Center Lampung.
President of PTPP Musyanif said by purchasing the 49% shares, PP has successfully managed to realize investment in power plant business.
Sepoetih Daya Prima is a company that secured a power purchase agreement (PPA) with PT Perusahaan Listrik Negara (Persero) to build a 2x7 MW power plant that can be developed to 72 MW in Center Lampung.
“Investment in power plant is a way to diverse our business field which is expected to add company revenue and construction profit and to be the new recurrent income source when it begins operating in 2012,” as he said, yesterday.
The 2x7 MW  and 2x30 MW power plants project might take IDR930 billion and will start in the first quarter of 2011. At the moment, the power plant project is in the process of engineering, procurement, and construction.

Disclosure: No position at the stock mentioned above.

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Delta Dunia seals US$500 mio contract

Coal mining contrator PT Delta Dunia Makmur Tbk (DOID) has secured US$400 million-US$500 million 5 year contract from PT Berau Coal through a tender process.

Delta Dunia Director Rani Sofjan in a press statement obtained by Bisnis today said the contract is for Pit East 2 of Berau’s Lati mine site and has a total production target of 226.8 million bank cubic meters of overburden and 20.7 million tons of coal. 

The projected value of the contract is approximately US$400-500 million, subject to hauling distance adjustments over the life of the contract.

Production associated with the contract is expected to commence in March 2011. "This contract is in addition to the existing Buma [PT Bukit Makmur Mandiri Utama]–Berau contracts that expire in 2018," Rani said in the statement.

In a morning note distributed by PT Mandiri Sekuritas, the new contract potentially gives additional revenue to Buma at approximately US$85 million per year or US$8.5 million to bottom line. Delta Dunia stocks are unchanged today at Rp1,600 per share.

Disclosure: No position at the stock mentioned above.

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Bayan to sell US$280 assets to Kangaroo

Coal miner controlled by two billionaries Dato' Low Tuck Kwong and Jenny Quantero, PT Bayan Resources Tbk (BYAN), aims to sell Pakar Thermal Coal Project to Kangaroo Resources Limited at A$277 million or US$280.97 million. All payable will be in Kangaroo shares.
In a formal statement submitted to Australia Stock Exchange today, following the coal project acquisition, Bayan Resources will emerge as controlling shareholder in Kangaroo Resources with an approximate 57% holding in Kangaroo.
This also includes a US$18 million injection into Kangaroo Resources to further boost its working capital. Pakar Coal Project is a fully-developed, integrated thermal coal operation in East Kalimantan. The project is ready for production in 2011.
The acquisition agreement is subject to due diligence, which will be carried out over the next 30 days and Kangaroo obtaining shareholder and regulatory approval.
Together with Kangaroo's other Indonesian coal assets, including the 100% owned Mamahak Coking Coal Project, which is currently producting, the Tanur Jaya Thermal Coal Project and the GPK Thermal Coal Project. This acquisition will reposition Kangaroo Resources as world-scale Indonesian coal producer.
Kangaroo Resources has been earning a 49% interest in Tanur Jaya concession (one of the nine concession within Pakar Project) over the past 12 months and this position will now be incorpotated into the overall 99% interest that Kangaroo Resources is acquiring in Pakar Project.

Disclosure: No position at the stock mentioned above.

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Rajiv Louis leads UBS Indonesia

UBS mandated Rajiv Louis as the country head for Indonesia last week. Rajiv currently occupies the position as head of investment banking division in Indonesia. In the last 7 years, he led the investment banking division of UBS in Indonesia.
"Indonesia is a country with the largest economy in Southeast Asia and the appointment of Rajiv has reinforced a long-term commitment to our business in Indonesia," said, Co-Chairman and C-CFO of UBS Group Asia Pacific Alex Wilmot-Sitwell, in a press release yesterday.
Rajiv mentioned in the release that he has more than 15 years experience in the financial services industry in Asia.
UBS provides various investment services via its unit in Indonesia, PT UBS Securities Indonesia.

Disclosure: No position at the stock mentioned above.

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Centrin Utama disposes Centrin Online

PT Centrin Inti Utama, shareholder of PT Centrin Online Tbk (CENT), has bagged Rp50.90 billion cash from selling shares in Centrin Online to three buyers.
Centrin Utama, in an official statement to Indonesia Stock Exchange (IDX), sold 138.04 million shares in Centrin Online at Rp165 per share to Legacy Investments S.A.R.L on December 28 2010.
Centrin Utama also sold 112.94 million shares in Centrin Online to Modern Access Technologies Inc at Rp165 per share.
Centrin Utama disposed 57.51 million shares in Centrin Online to Omni Potent Ventures Capital Ltd at Rp165 per share.
Centrin Utama Director Megawati Setiadi said the company disposed Centrin Online as it needs cash. Post disposal, Centrin Utama controls 24.04% holding in Centrin Online. 

Disclosure: No position at the stock mentioned above. 

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Bayan soars 4.47% on Kangaroo deal

Coal miner controlled by Dato' Low Tuck Kwong and Jenny Quantero PT Bayan Resources Tbk (BYAN) rose 4.47% to Rp18,700 per share.
The stocks have steeply soared 31.69% to Rp18,700 from December 21 at Rp14,200 per share. Considering the price today, Bayan stocks are so expensive. It is traded at 139.87x of price to earning ratio (P/E).
Bayan's earning per share in September was Rp147 and annualized of Rp196. Regarding to annualized EPS, Bayan stocks are traded at 95.41x P/E by end of this year. 
In an official statement last night, Bayan announced an acquisition agreement of nine coal concession assets from PT Ilthabi Bara Utama and Prime Mine Resources Ltd.
The coal assets have resources of 3.8 billion metric tons and 116 million metric tons reserves. These concessions are strategically located adjacent to Bayan’s existing Tabang mines which are already in production. The acquisition includes existing infrastructure which will complement and fast track the growth of production of the combined assets.
“This transaction is in line with Bayan’s strategy of growth through acquisition and expands our resource base whilst also providing significant infrastructure and operational synergies," said Eddie Chin, President Director of Bayan, in a press statement.
Based on share purchase agreement signed by Bayan and Kangaroo Resources on December 28 2010, Kangaroo Resources will issue new shares, enabling Bayan Resources to control Kangaroo Resources.
Jenny Quantero, Bayan Corporate Secretary, said Bayan has agreed to takeover 100% holding in PT Tanur Jaya, PT Apira Utama, PT Cahaya Alam, PT Bara Sejati from Ilthabi Bara Utama and Romo Nitiyudi Wachjo.
Bayan Resources also agreed to buy 99% shareholdings in PT Tiwa Abadi, PT Sumber Api, PT Silau Kencana, PT Orkida Makmur, and PT Dermaga Energi, from Ilthabi Bara Utama, Prime Mine Resources, and Romo Nitiyudi Wachjo.
"We anticipate the acquisitions will be accomplished by end of the first quarter of 2011 after Bayan completes the due diligence," Jenny said. 

Disclosure: No position at the stock mentioned above. 

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Stock recommendations today

Holiday season in the end of the year has influenced the trading volume in the stock market to go flat or below the average daily transaction in this year. Jakarta Composite Index (JCI) is predicted to move within the range of 3,630-3,700, today. 

Some of securities companies today recommended a closely watch on several stocks including AALI, ISAT, and BBRI as reported by Bisnis.com today.

e-Trading Securities:
In trading today, e-Trading predicted the index to move within the range of 3,630-3,690. BUMI, ICBP, INDF, and BBRI are several shares that deserve a closely watch.
Meanwhile, in yesterday’s trading, the index was closed to rise 0.96% or 34.73 points to 3,659.99. Yesterday, the trading volume remained below the average daily transaction volume this year, although it was still higher than the previous day.
The securities company said the increase of the index yesterday was allegedly occurred as an impact of window dressing in some stocks. Foreign investors recorded a net buying of IDR110 billion. 

Trimegah Securities:
For today's trading, Trimegah predicted the index to move within the range of 3,631-3,680. The securities recommended to buy on AALI, ISAT, and MYOR. Meanwhile, the increase in commodity price became a trigger to the gain in the index yesterday amid the loss in most of regional exchanges. 

Trimegah said the yesterday’s increase will open up opportunities for the index to touch a new resistance level at around 3,680. However, in the end of this year, selling pressure from market participants who started to realize the benefits must be aware.

Erdikha Sekuritas:
The brokerage technically predicted today that the index is still trying to continue its further increase and moving within a limited range of 3,610-3,700.
Erdikha also recommended to have a closely watch on INDF, KLBF, and BDMN in today’s trading. Yesterday, the increase of almost all sectors bolstered by of stock of basic industries and the agriculture shares that brought the index to nearly touch the level of 3,700.

Disclosure: No position at the stock mentioned above.  

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Bayan to buy Kangaroo Resources

When PT Bakrie & Brothers Tbk jolted the market with a backdoor listing in the London stock market, Dato's Low Tuck Kwong and Jenny Quantero, two billionaires with their Indonesian coal assets, have made a breakthrough in the Australia stock market.  

By entering a share purchase agreement on December 28 with Kangaroo Resources Limited, Bayan Resources will do the same thing with Bakrie did, a backdoor listing!  

Tuck Kwong and Jenny Quantero don't transfer or share exchange their assets with Kangaroo Resources, but they will inject Kangaroo Resources with 9 coal concession assets in East Kalimantan with coal resources of 3.8 billion metric tons. 

Based on share purchase agreement signed by Bayan and Kangaroo Resources on December 28 2010, Kangaroo Resources will issue new shares, enabling Bayan Resources to control Kangaroo Resources. Bayan, in an official statement to Indonesia Stock Exchange today, has also entered into share sale and purchase agreements with three buyers PT Ilthabi Bara Utama, Prime Mine Resources Limited, Romo Nitiyudi Wachjo, on December 28 2010 to acquire 9 coal consession assets in East Kalimantan.

Jenny Quantero, Bayan Corporate Secretary, said Bayan has agreed to takeover 100% holding in PT Tanur Jaya, PT Apira Utama, PT Cahaya Alam, PT Bara Sejati from Ilthabi Bara Utama and Romo Nitiyudi Wachjo.

Bayan Resources also agreed to buy 99% shareholdings in PT Tiwa Abadi, PT Sumber Api, PT Silau Kencana, PT Orkida Makmur, and PT Dermaga Energi, from Ilthabi Bara Utama, Prime Mine Resources, and Romo Nitiyudi Wachjo.

Based on the exploration data, the 9 coal consession assets have reserves of 116 million metric tons and resources of 3.8 billion metric tons. "We anticipate the acquisitions will be accomplished by end of the first quarter of 2011 after Bayan completes the due diligence," Jenny said.

In November, Tuck Kwong kept buying Bayan shares aggressively last month. In an official statement to Indonesian Stock Exchange, he reported a purchase of 31,000 shares at Rp12,927 per share or Rp400.74 billion.

Disclosure: No position at the stock mentioned above.

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Northstar shareholding in Delta Dunia

J.P.Morgan Securities is now in net buy position for PT Delta Dunia Makmur Tbk (DOID) stocks worth Rp35,24 billion.
The massive buy on Delta Dunia stocks has lifted the coal mining contractor 6.67% to IDR1,600 per share. What is next plan of Northstar Equity Partners on Delta Dunia? Please login or register to read the remaining story.   

Disclosure: No position at the stock mentioned above. 

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Nippon Indosari sets Rp780 bio revenue

PT Nippon Indosari Corpindo Tbk (ROTI) is eyeing Rp780 billion revenue in 2011, a 30% increase from this year's target of Rp600 billion.

"As of November, we posted Rp550 billion revenue. We could usually book Rp60 billion additional revenue in a month," said Nippon Indosari Corporate Secretary Arlina Sofia as reported by a local media.

The company estimates to reach Rp600 billion revenue this year, a 23.5% increase from Rp485.9 billion last year. But, she declined to mention the net income target at end of this year.

Nippon Indosari intends to build two or three new bread maker facilities in three cities, Medan, Makassar, and South Jakarta with total investment of Rp160 billion-Rp240 billion. "For one facility, we estimate to spend Rp60 billion-Rp80 billion."

Disclosure: No position at the stock mentioned above.

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Summarecon seeks Rp1 trio financing

Property developer PT Summarecon Agung Tbk (SMRA) is considering three options of financing in a bid to raise Rp1.05 trillion.

As reported by a local media, Summarecon President Director Johanes Mardjuki said the company is exploring loan facility, bond issuance, and rights issue to obtain the financing. The company will use the financing to meet capital expenditure requirement set at Rp1.5 trillion.

"The financing is hopefully to meet 70% of the capex, while the remaining will be supported by internally generated cash flow," he said. 

Summarecon has obtained informal agreement from banks regarding to the facility. However, the company still requires bond issuance and rights issue scheduled mid 2011.

According to him, the company will use the capex to continue business expansion in Summarecon Serpong, Semmarecon Kelapa Gading, and Bekasi. 

Disclosure: No position at the stock mentioned above.

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Dian Swastatika acquires Rolimex Kimia

Energy and Infrastructure company PT Dian Swastika Sentosa Tbk acquired the majority shares of PT Rolimex Kimia Nusarnas.
In their disclosure to the IDX today, Dian Swastika Corporate Secretary Heri Santoso said that the company purchased 77.31 million shares or 99.5% of Rolimex Kimia from PT Menara Madju for about IDR63 billion.
The shares purchasing agreement between Dian Swastika and Menara Madju was sealed on December 23, 2010.
Perjanjian jual beli saham Rolimex itu ditandatangani oleh Dian Swastatika dan Menara Madju pada 23 Desember 2010.
The disclosure does not detail the purpose of Rolimex’s acquisition.

Disclosure: No position at the stock mentioned above.  

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Astra Graphia to post Rp1.4 trio revenue

Document and IT solution provider PT Astra Graphia Tbk (ASGR) is estimated to book at least 1.5% growth revenue in 2010 of IDR1.4 trillion from last year with 8% compounded annual growth rate from 2010-2014.
In a company report published by PT Pemeringkat Efek Indonesia (Pefindo) published today, the increase in Indonesia economic growth to above 6% in 2010 and recovering purchasing power is expected to support ASGR.
"For 2010 we estimate ASGR to book at least 1.5% YoY revenue growth to reach IDR1.4 trillion and CAGR 8% from 2010-2014," said the report.
With getting modern office document solution technology, many corporate need reliable document solution services, the company which has a good track record and reliable resources will be one big option.
"We estimate ASGR’s revenue growth will still in good figure in 2010, although they book 11.5% YoY decrease in 3Q10, as in the last quarter will be more sales because there are increasing demand from government and private sector as spending of 2010 remaining budget."
Astra Graphia recorded good performance in 3Q10 although its sales decreased by 11.5% YoY, its gross profit reached IDR303.4 billion or a 8,6% increase YoY from 3Q09 figure of IDR279.4 billion. Operating profit in 3Q10 showed even better increases, it reached IDR95.2 billion, raise 13.1% YoY from 3Q09 figure of IDR84.1 billion.
ASGR’s efficiency showed its effect here, they success to reduce its COGS from 70.9% in 3Q09 to 64.3% in 3Q10, so they booked better gross margin of 35.7% compared to 29.1% in 3Q09.
Although there some increases in operating expenses, ASGR still can booked operating income growth above 10% in 3Q10.
Free from Long-term DebtAs they success to improve their margin in 2010, Astra Graphia keeps maintaining it so in 3Q10 they record 11.2% operating margin, comfy above previous years figure of 8.8%.
Also in 2010, ASGR paid their long term debt so there will be lower interest expenses ahead for better net margin.
In 3Q10, the company booked 56.0% YoY net income increase as there is 77% decrease in interest expenses during the period.
The company's net margin is increase from 4.9% in 3Q09 to 8.7% in 3Q10.
With current economic condition, Astra Graphia's net margin could be higher as there are stable exchange rate and lower interest expenses.

Astra Graphia started its journey in 1971 as a Xerox Division of PT Astra International. In line with the rapid business growth, in 1976 the Xerox Division separated itself from PT Astra International and became an independent company, PT Astra Graphia.
Currently, entering its 30th year as an independent company, ASGR focuses on the Document Solution business with Fuji Xerox Co Ltd, as its main principal, a global expert document company with head office in Japan.
The document solution business does not only comprise the photocopy machine business, but has meanwhile transformed alongside the rapid growth of the IT development to emerge as an IT-Based Document Solution provider.
ASGR manages 77 service points at 22 branches throughout Indonesia. With long experiences and numbers of branches, we believe ASGR as one of the biggest document solution provider in Indonesia.

Disclosure: No position at the stock mentioned above. 

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Bank Mandiri eyes Rp14 trio rights issue

One of Indonesia’s largest banks, PT Bank Mandiri Tbk (BMRI), targets to pocket of Rp9.36 trillion-Rp14.39 trillion proceed from right issue of B-series shares.
Bank Mandiri aims to issue 2.34 billion shares or 11.14% shares of the totally paid shares schedules in February 2011.
Mentioned in a today’s publication of right issue’s prospectus, Bank Mandiri sets a right issue price at the range of Rp4,000-Rp6,150 a share. Meanwhile, the Bank Mandiri’s right issue is scheduled in February 2011.
Each holder of 8,985 shares has 1,000 preemptive rights to buy a new share that will be issued by the lender.
On the other hand, PT Mandiri Sekuritas and PT Danareksa Sekuritas act as the right issue’s underwriters as well as standby buyers for 778.69 million shares that weren’t owned by the government’s portion.
The government will not exercise 1.56 billion preemptive rights. Based on a purchase agreement signed on December 23 2010, the rights will be transferred to Danareksa and Mandiri Sekuritas. Furthermore, they will sell and offer the rights to foreign and domestic investors.
According to the plan, Bank Mandiri will allocate the fund of right issue to strengthen its capital structure that support its business development and credit growth in the future.

Disclosure: No position at the stock mentioned above.  

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Danareksa bonds oversubscribe 5 folds

The state-owned enterprises PT Danareksa (Persero) received 5 times oversubscribed from the offering of the company's V/2010 bonds valued at Rp500 billion that being offered to investors.
"The oversubscribed were about five times more," said President Director of Danareksa Edgar Ekaputra, yesterday.
The bonds were divided into two tranches, i.e. A tranche that mature in 3 years with coupon that offered in the range of 8.875 to 9.625% and B tranche that mature in 5 years with coupon offered in range of 9.625% to 10.375%.
The company will use the bond proceeds to disburse its debts. The state-owned financial company has appointed PT Danareksa Securities, PT Mandiri Securities, and PT Trimegah Securities Tbk as the underwriters of the bond issuance.
Danareksa has also issued bonds worth of IDR200 billion last year and Rp130 billion in 2008. The company led by Edgar was rated idA by PT Pemeringkat Efek Indonesia (Pefindo).

Disclosure: No position at the stock mentioned above.  

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Radiant Utama eyes IDR1 trio contracts

PT Radiant Utama Intrinsco Tbk eyes IDR1 trillion contract in 2011 for technique service of oil and gas installation.
Coki Lubis acted as Corporate Secretary and also Operating Director of Radiant informed that several contracts will be readily on bidding.
While, the company also has IDR100 billion loan for its working capital. Until the first half of 2010, Radiant has pocketed Rp500 billion contract that was gained mainly from production sharing contract (PSC) of operational supporting service and the remaining came from inspection service as well as quality certification service.
The company's PSC includes Rp79 billion PSC in Kalimantan, Rp43.3 billion PSC in East Java, then Rp40.9 billion PSC in Sumatera, and Rp26.2 billion in West Java.
Recently, Radiant needs for fund injection around of US$3 million to US$4 million to finance Oil and Gas Block at Bukit Barisan, West Sumatera that was owned in 2008 and is expected to contribute for the company's revenue in 2013.

Disclosure: No position at the stock mentioned above.

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CIMB bond oversubscribes 3 folds

PT Bank CIMB Niaga Tbk (BNGA) has secured three folds oversubscribed during the book building of IDR1.6 trillion bonds issuance.
In a press statement, the bonds, listed at Indonesia Stock Exchange on December 27 2010, obtained AA rating from PT Fitch Ratings Indonesia.
CIMB Niaga is scheduled to pay the bonds principal at the end of 10 year. PT CIMB Securities Indonesia is the only lead underwriter for the bonds.
CIMB Niaga has secondly issued the subordinated bonds this year. The IDR1.38 trillion first issuance was made in July with 7 year maturity. Previously, CIMB Niaga offered the bonds at 10.5%-11%. At the closing, the bank determined the coupon at 10.85%.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Jakarta Composite Index is predicted to move quite stable with PTBA, ANTM and AKRA as the recommended shares. Here are the full recommendations today as reported by Bisnis.com today:

e-Trading Securities:
Transactions in the stock market today are estimated to be pretty dull and the index might move between 3,600 – 3,660. Shares that may be considered for today's trading are PTPP, IDKM, CPIN, and AKRA.
As yesterday trading closed rose 13,73 points (0,38%) to 3,625.26 with transaction value only Rp1.8 trillion, It shows a lot of investors are on vacation. Foreign investors only booked net buying on Rp20 billion.

Panin Sekuritas:
Index is estimated to move between 3,600 – 3,650. JCI tends to move mixed, although it managed to close higher yesterday. The lack of positive sentiment, fears on rising inflation above expectations, and the factor of China's rising interest rates, making investors postponed their buying action towards the close of this year.

Erdikha Sekuritas:
The index movements tend to be flat and predicted to move in the range 3,580-3,650 with ITMG, PTBA, ANTM, and INCO as the recommended one.
On yesterday’ closing, miscellaneous industry sector, led by ASII, was one of those who support the strengthening index. Increase in the mining sector, after getting a positive sentiment from a stronger coal prices, also helped the JCI.

Trimegah Securities:
This wait and see situation, amid to holiday season, has the potential to burden index movement. JCI is estimated to move between 3,611 – 3,643 today with BMRI, LSIP and PGAS as the recommended shares.

Disclosure: No position at the stock mentioned above.  

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Megapolitan sets IPO at Rp250

Property player PT Megapolitan Developments Tbk has set  the IPO price at Rp250 per share, the top level of the range previously offered at Rp150-Rp250 per share. Following the IPO price, Megapolitan will snap upRp212.5 billion proceed/

The company plans to issue 850 million shares will be released to the public. Ferry Sudjono, President Director of PT Henan Putihrai, Megapolitan's IPO underwriter, confirmed the final price. "Based on the book building, Megapolitan IPO is set at Rp250 per share," he said.
President Director of Megapolitan Melani Lowas previously said most of the IPO proceeds will be used for business development, and the rest to be allocated for the company’s working capital.
"The IPO will be held to fund the company’s business expansion considering the potential growth in property sector next year," he said/
Of the total IPO funds, about 36% will used to develop apartment projects, lifestyle centers, and hypermarkets at Puri Cinere, Depok and 24% will be used for funding the construction of infrastructure facilities in Cimandala Sentul City.
Whereas, 27% of the fund will be used to develop housing and shopping center at Sentul Tatya Asri. Then the other 5% will be allocated for development of Graha Cinere Depok residential, and the rest for adding working capital, especially for employees' salaries.

Disclosure: No position at the stock mentioned above.  

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Lebong Tandai to buy Avocet takeover

PT Lebong Tandai, a subsidiary of Merukh Enterprises, is ready to complete the share purchase payment of 80% Avocet Mining Plc assets in Indonesia and another 100% assets in Southeast Asia particularly gold mining in Penjom Malaysia valued at US$250 million.
Manager Government and Public Relations Merukh Enterprises Alexander Yopi said that Avocet has submitted the purchase settlement structure of its assets in Indonesia and Malaysia to Lebong Tandai.
"We have agreed on the purchase settlement structure and obtained loan money from one of bank in Singapore to realize the immediate purchase settlement of Avocet assets," Yopi said in a release this morning.
Furthermore, Yopi said Merukh has approved the proposed payment structure and informed Avocet management that Singapore-based financial institution along with Boustead Singapore Ltd had agreed to help Lebong Tandai in completing the purchase settlement of its assets in Indonesia and Malaysia in accordance with the schedule proposed.
“We are currently waiting for response from Avocet management to immediately realize the payment. Until this moment, Avocet hasn’t responded upon the readiness of Lebong Tandai," he said.

Disclosure: No position at the stock mentioned above.
 
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AKR Corporindo to produce coal in 1Q11

PT AKR Corporindo Tbk (AKRA) expects to produce coal in the first quarter of 2011. In a prospectus published today, AKR, via a subsidiary called PT Anugrah Karya Raya, manages 24,388 hectares of five coal concessions in North Barito, Kalimantan. 

AKR acquired 87.5% stake in Anugrah Karya Raya at end of last year. The company plans to market its coal to China via its port in Guigang, China.

AKR has four main businesses, trading and distribution of chemical products and fuels, logistic, coal mining, and manufacturing. 

In June, AKR channelled loan facility worth Rp60 billion to Anugrah Karya Raya. AKR charged 13.5% of annual interest rate on the fcility, maturing in 3 years. Anugrah will use the facility to acquire assets and working capital for itself and its subsidiaries in relation to thriving coal business.

Disclosure: No position at the stock mentioned above.  

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Delta Dunia surges 2.05% on CIC deal

Coal mining contractor PT Delta Dunia Makmur Tbk (DOID) today surged 2.05% to Rp1,490 per share, close to the highest level since March 2010 at Rp1,510.

The surge is following the announcement of China Investment Corporation (CIC) that joined a consortium of TPG Capital and Government of Singapore Investment Corporation (GIC) to acquire all non-voting interest in Northstar Tambang Persada Ltd (NTP) from Widjaja family (Sinarmas Group) and Bakrie Group.

In an official statement to Indonesia Stock Exchange (IDX) yesterday, NTP Director Glenn T. Sugita said following the stake purchase by CIC, the shareholders of NTP are now consisting of Northstar Equity Partners (voting rights' holder), TPG, GIC, and CIC.

"Northstar Equity continues to retain voting rights and controlling interest in NTP," Sugita said in the statement.  

CIC is an investment institution established in 2007 as a wholly state-owned company under the Company Law of the People’s Republic of China.

A source close to the deal said in the consortium, TPG Capital holds the majority shareholding of about 80%, while the remaining goes to GIC and CIC with approximately 20% shareholding each.  

Disclosure: No position at the stock mentioned above.  

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Exploitasi Energi eyeing Rp103 bio profit

Energy company PT Exploitasi Energi Indonesia Tbk (CNKO) is eyeing Rp103.5 billion net income in 2011, a 107% jump from Rp50 billion at end of this year.

Exploitasi Energi President Director Erry Indriyana said the net income rise will be underpinned by the operational of steam-fired power plant with 2x7 MW capacity in Pangkalan Bun, Central Kalimantan. The power plant is estimated to generate Rp44 billion revenue per annum. "We estimate to obtain Rp16 billion net income annually," said Erry as reported by a local media.,

The company also expects coal sales to four power plants owned by PT Perusahaan Listrik Negara with capacity of 1.5 million metric tons annually. The power plants are Labuan Angin, Suralaya, Rembang, and Indramayu. 

Disclosure: No position at the stock mentioned above.

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Agis to acquire 3 gold mining companies

Electronic distributor PT Agis Tbk (TMPI) is considering to spend US$150 million or Rp1.3 trillion for business expansion next year. The company will be supported by its shareholder Global Emerging Markers Ltd (GEM).

"We will realize an expansion in the resources and energy sectors as we have been fully underpinned by GEM," said Agis President Director Steven Kesuma as reported by a local media today.

Agis is considering several mining assets such as gold mining companies as acquisition target. Agis has options to acquire majority holding in three gold miners in West Sumatra.

According to him, the gold mining companies are PT Bina Bakti Pertiwi, PT Inti Bumi Sejahtera Mandiri, and PT Datacom Indojaya. Agis and the three companies have entered into exclusive agreements. Steven Kesuma said Agis will sign a loan agreement of Rp325 billion next year with GEM as working capital.

  

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Jakarta Composite Index (JCI) still has a chance to post a rebound, after being corrected 0.25% to as low as 3,611.53 before Christmas holiday last week. ANTM and UNVR are the top picks today. Here are the recommendations as reported by Bisnis.com today:
 

Trimegah Securities:
Trimegah Securities predicted that today the index will move between 3,591-3,637. ANTM, MYOR and UNVR are some stocks that worth a closely watch. At last week’s closing, the index experienced a correction of 0.25% (9.15 points) to a level of 3,611.53. Trading activity was relatively flat since investors still have a big concern on global economy.

Trimegah also predicted that the index is more likely to rebound, supported by the rising trend on the short-term indicators.

e-Trading Securities:Furthermore, e-Trading Securities predicted to move within the range of 3,565-3,650 in today’s trading. Last week, before Christmas holiday, the index dropped 0,25% amid the lower trading volume since the investor remained to wait and see in the holiday season. Foreign investor booked net selling of Rp110 billion.

Disclosure: No position at the stock mentioned above.

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CIC, welcome on board of Delta Dunia

Chinese sovereign wealth fund China Investment Corporation (CIC) today finally announced its enrollment into a consortium of TPG Capital and Government of Singapore Investment Corporation (GIC) for acquiring all non voting shareholder in Northstar Tambang Persada Ltd (NTP), which is also a 40% shareholder of PT Delta Dunia Makmur Tbk (DOID).

In an official statement submitted to Indonesia Stock Exchange (IDX) today, NTP Director Glenn T. Sugita said following the stake purchase by CIC, the shareholders of NTP are now consisting of Northstar Equity Partners (voting rights' holder), TPG, GIC, and CIC.

"Northstar Equity continues to retain voting rights and controlling interest in NTP," Sugita said in the statement. 

CIC is an investment institution established in 2007 as a wholly state‐owned company under the Company Law of the People’s Republic of China.

A source close to the deal said in the consortium, TPG Capital holds the majority shareholding of about 80%, while the remaining goes to GIC and CIC with approximately 20% shareholding each.  

 

Disclosure: No position at the stock mentioned above.  

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Aneka Tambang sets Rp3 trillion capex

Gold and nickel miner PT Aneka Tambang Tbk (Antam) plans to spend Rp3 trillion capital expenditure (capex) next year. Most of the spending will be driven by internally generated cash flow.

"We have determined that our capex in 2011 is Rp3 trillion," said Antam President Director Alwin Syah Lubis said recently.

The company aims to spend the capex for several projects such as chemical grade alumina Tayan which will be constructed next year.

Antam also plans to build US$1 billion smelter grade alumina project, US$1.4 billion Halmahera project, and US$140 million Mandiono project. In 2011, Antam targets to produce 18,000 tons ferronickel  from 18,500 tons estimated in 2010.

Disclosure: No position at the stock mentioned above.  

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Skybee disposes Sinergitama Komindo

A data services provider and a cell phone distributor for middle-down market, PT Skybee Tbk, disposed 44.9% shares in its subsidiary, PT Sinergitama Komindo, to PT Sinergitama Mandiri. 

The share disposal eroded the company's ownership in PT Sinergitama Komindo to 55% while Sinergitama Mandiri owned the rest. Unfortunately, the company did not explain the transaction value and whether the deal was included in   affiliated transaction.

The transaction gave impact to statement of absorbed profit or loss in Sinergitama Komindo to 55% from previously 99.99%, the Skybee’s management explained in a disclosure submitted to the market authority today.

Skybee is a new publicly-traded company which listed its shares on July 7, 2010 through an Rp88.125 billion initial public offering (IPO) by releasing 40.17% shares at a price of Rp375 a unit.

Disclosure: No position at the stock mentioned above.

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Adaro Energy & higher capex in 2011

PT Adaro Energy Tbk (ADRO), one of the biggest coal producers in Indonesia, aims to enlarge its capital expenditure (capex)  from previous estimation of US$464 million.

Besides routine spending, The company is also allocating capex to bankroll barging, coking coal project dubbed, independent power producers, and potential acquisitions. Please login or register to read the remaining story.   
Disclosure: No position at the stock mentioned above.  

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JCI new target set to reach 4,100

The Indonesian stocks market has shown strong performance in 2010, with the Jakarta Composite Index (JCI) up 41.3% year to date, at a 14.9x 12-month forward price to earning ratio (PER), thanks to strong earnings growth amidst brisk economic expansion.
Indeed, our economic cycle is still at an early phase of a 7-year cycle, meaning strong earnings growth to come.
"We now set our FY11E index target at 4,100, based on a bottom-up approach, implying 16.3x 2011 PER. Our conviction is supported by continuation of benign inflation and therefore record low interest rates, sustainable earnings growth of 24.8% and an upsurge in FDI-led investment growth," said a market outlook published by PT Danareksa Sekuritas on December 22.
Danareksa's estimate of 2011 GDP growth remains at 6.4%, buoyed by robust investment aside from the higher consumption growth.
Bank lending has been supportive as well, with loans growth likely to reach 18.6% next year. Upside is from a potential upgrade in the sovereign rating and realization of infrastructure projects, while downside risks are potential global economic slowdown and a sudden upsurge in inflation.  

The macro outlook looks rosy
While inflation carries a big risk to our economy, the recent years of economic expansion have tended to insulate consumers from rising costs.
"We estimate inflation to rise to 6.2% by YE11, not a big jump from the current year’s 6.0%, although we may see some upward pressure mid-year."
The BI rate is likely to be kept at 6.5%, that’s assuming BI’s inflation, targeting policy still stands. Continuity in food supplies, specifically rice, is one of the big risks,
"We believe, given a lack of infrastructure. Yet market operations and the likelihood the government doesn’t obstruct imports may ease demand-pull inflation. Concerns over the growing base money (M0), and therefore potentially higher inflation, appear to be unfounded, as well."
This is especially true given the brisk rate of GDP growth.  Besides, one needs to consider the unused government account in BI amounting to IDR169 trillion as of October. So, what may derail Danareksa's inflation forecast? Well, food supply issues aside, efforts to reduce the consumption of subsidized fuel is a challenge.
Only recently, the nation’s parliament approved a long-awaited measure curbing fuel subsidies.
By the end of March next year, subsidized fuel shall only be available for public transport vehicles and motorcycles.
"As a result, inflation is likely to increase by 0.3%, not much, we think; although that’s assuming that only private cars are prohibited from using subsidized fuel."  

Investment driven growth 
The key theme for economic expansion remains investment growth and government spending. So far, FDI has increased by 27.5% YoY to about US$11.9 billion and by 43.6% for domestic investment.
Despite the economic expansion, production utilization is relatively unchanged, which in a way suggests that demand has kept pace with the investment growth.
What remains a bottleneck to our economy is realization of infrastructure projects, although around US$47 billion are expected to be tendered over the next 5 years.
Next year, investment growth should reach a strong 12.9% -after a good start this year. Much will hinge on the ability of banks to lend aggressively. Thus far, lending has been robust, and as the economy continues to expand, loans growth is expected to stay above 15% per annum. 

Disclosure: No position at the stock mentioned above.  

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Multistrada expects Rp230 bio net profit

Tire maker PT Multistrada Arah Sarana Tbk (MASA) estimates to post Rp220 billion-Rp230 billion net profit at end of 2011. The company also estimates to book nearly Rp2.1 trillion net sales and Rp170 billion net profit at end of this year.
Even Go, Head of Investor Relations of Multistrada, said the company is focusing to close its operational in 2010. "We have obtained loans facility to expand tire output capacity scheduled to complete in the second half of 2011," he said.
Multistrada, one of Indonesia's tire maker with stellar brands Achilles, Corsa, and Strada, posted Rp1.52 trillion net sales in the first 9 months of this year, a 27.73% increase from Rp1.19 trillion a year earlier.
The company recorded 9M net income of Rp114.97 billion or Rp18.8 per share. 
Even said the company expects 7 million-7.5 million tires in 2011 from 5.6 million tires in 2010. The company has prepared US$129.5 million for 2 years expansion of production capacity.
Multistrada secured US$143 million loan facilities from several banks such as Bank Internasional Indonesia, CIMB Niaga, and HSBC with 5 year maturity. Multistrada also obtained US$42 million loan from Unicredit AG, Germany.

Disclosure: No position at the stock mentioned above.

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Bumi Serpong closes DUTI takeover

Property developer under Sinarmas Group PT Bumi Serpong Damai Tbk (BSDE) has completed acquisition of 1.58 billion stake or 85.31% holding of capital paid-in in affiliated property company PT Duta Pertiwi Tbk (DUTI) on December 3.
Bumi Serpong Vice President Director Welly Setiawan Prawoko said in an official statement to Indonesia Stock Exchange (IDX) yesterday Bumi Serpong has used proceed of the first rights issue to bankroll the acquisition.
Bumi Serpong also used the proceed to participate in 15.26 million new shares or 60% of capital paid-in in PT Sinar Mas Teladan on December 17.
Bumi Serpong utilized the rights proceed to participate 50.36 million new shares or 55% of capital paid-in in PT Sinar Mas Wisesa on December 17.
Bumi Serpong offered 6.56 billion new shares during the rights issue. Based on preemptive rights, about 6.42 billion shares had been exercised.
The company also received additional subscription of 286.14 mmillion shares for the rights issue, 136.76 million shares of allotment.
Post the rights issue, Bumi Serpong's outstanding shares increased to 17.49 billion shares from 10.94 billion shares. 

Disclosure: No position at the stock mentioned above.  

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Protelindo secures US$30 million loan

Telecommunication tower provider PT Profesional Telekomunikasi Indonesia (Protelindo), wholly owned subsidiary of PT Sarana Menara Nusantara Tbk (TOWR), has secured US$30 million loan facility on December 23 2010 from several lenders.

Protelindo has sealed the facility from ABN Amro Bank N.V., Jakarta branch, DBS Bank Ltd, Oversea-Chinese Banking Corporation Limited, and Standard Chartered Bank. They are acting as mandated lead arrangers. Royal Bank of Scotland Plc and PT Bank Central Asia Tbk act as facility agent and common security agent.

Two controlling shareholders in Sarana Menara, PT Tricipta Mandhala Gumilang and PT Caturguwiratna Sumapala, both as affiliated of Djarum Group, disposed 39% stake in Sarana Menara at Rp12,000 per share or Rp4.76 trillion.

Both sellers had placed the stake to several institutional investors such as PT Schrodes Investment Management and T. Rowe Price, Sarana Menara's managemenet, and affiliated parties.

Post private placement, Tricipta Mandhala controls 25.55% stake and Caturguwiratna Sumapala holds 24.55% stake, while public investors own 49.90%. 

Disclosure: No position at the stock mentioned above.  

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Pan Brothers eyes US$310 mio revenue

After conducting a rights issue and other corporate actions, PT Pan Brothers Tbk targets its revenue to grow double to US$310 million in 2011.
Vice Chief Executive Officer of Pan Brothers Anne Patricia Sutanto explained the company is optimistic its revenue in this year to reach US$155 million, or equal to the revenue in 2009.
"Our revenue in 2010 expected to reach US$155 million. Whereas, the current position of comapany’s has reached US$150 million. It means the revenue target is the same as in 2009. For next year’s target, we expect to post a double increase in the revenue compared to last year’s period," she said yesterday.
Related to the right issue funds, Anne said that the company will use the funds for investment purposes such as to extend production capacity and to increase the company’s investment up to 33.33% in its subsidiary, Ekabrothers.
"We will add 4,800 new machines. About 3,000 machines will be put in Pancaprima and 1,800 machines in Pan Brothers. The current total machines in Pancaprima and Pan Brother reach 8,400 machines. And it will be increased to 14,200 machines."
She also said the company and its subsidiaries consolidated capital expenditure (capex) in 2011 set at Rp340 billion.
"The capital expenditures were taken from the proceeds of the previous rights issue," he added.
The company plans to conduct the second stage of rights issue in early 2011. Pan Brothers (PBRX-coded stock) will offer common shares as much as 445 million shares at Rp1,350 share. As calculated, with this offering price, the company may obtain Rp601 billion. In addition, the company will also publish 148 million of Series I Warrants at Rp1,600 per share.
Furthermore, the company also plans to conduct a stock split after the rights issue. "We can not ensure the time because the company still focuses to build investments. Firstly, we would like to make sure the performance of the company is in line with our commitment to investors," he added.

Disclosure: No position at the stock mentioned above.  

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Metrodata to dispose E Metrodata Com

The distribution, solution and consultation service provider, PT Metrodata Electronics Tbk (MTDL), will exercise a put option over its 51% holding in PT E Metrodata Com (EMC) at IDR10,200 per share or US$8.80 million.
In the information disclosure to the shareholders published today, it was stated that Metrodata will undertake the put option of EMC’s stakes to BT Frontline and BT Singapore. “The proceed of such stocks selling shall then be used to enhance the working capital and financial structure,” said Metrodata’s management in the information disclosure.
EMC happens to be Metrodata’s subsidiary focusing on information technology business. In the meantime, EMC partners with BT Frontline and Sun Microsystems Inc, US, to establish a joint venture company under PT Sun Microsystems Indonesia (SMI).
Regarding to the takeover of Sun Microsystems by Oracle USA Inc since April 2009, Metrodata perceived such takeover puts into affect to the company and SMI. The takeover process was completed in January 2010.
At the moment, Ockham Cay Holding Ltd, BVI dominates 12.32% shares of Metrodata, while Hiskak Secakusuma (President Commissioner) controls 10.83%, and the remaining 76.85% is owned by public.
Metrodata recorded Rp2.95 trillion net sell until the end of October 2010 as it also posted Rp172.4 billion operating income and Rp16.2 billion net income. 

Disclosure: No position at the stock mentioned above.

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IDX to delist New Century Development

Indonesia Stock Exchange (IDX) shall conduct a delisting over the stock of Indonesia’s property company, PT New Century Development Tbk (PTRA) by 24 January 2011.
In the official statement unveiled in IDX’s website, such delisting relatively corresponds to the Regulation No. I-I on Stock Deletion and Delisting in Indonesia’s stock market.
The market authority delisted the stake of a listed company if it experiences a particular condition or situation that significantly give negative influence towards the company’s business continuity seeing from financial and legal perspectives.
Prior to such delisting, the market authority facilitated New Century’s stocks trading in the negotiation market for 20 trading days from 23 December 2010-21 January 2011.
By such delisting, New Century no longer poses any obligation as a listed company and the market authority shall removed the company’s name from the list of Indonesia’s listing company.

Disclosure: No position at the stock mentioned above.  

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Bumi Serpong books Rp2.2 trillion sales

Marketing sales of property developer PT Bumi Serpong Damai Tbk (BSDE) exceeded its target of Rp2 trillion in mid-December 2010. Currently the sales figure of Bumi Serpong Damai (BSDE-coded stock) has reached Rp2.2 trillion
The biggest contributor to sales figure is still dominated by housing products that reached nearly 70% of total sales, the remaining of 30% came from commercial products. The main housing products of the company are sub-cluster housing such as Foresta, the Icon and de Park which was newly launched last month.
"The level of sales which exceeded the previous target was bolstered by strong sales of residential products. Properties in BSD City are very attractive to consumers since they have been developed as a whole. Moreover they are supported by facilities like in a big city. Infrastructure and road access that have been developed is the major feature in our project," said President Director of Bumi Serpong Damai Harry Budi Hartanto, yesterday.
To support the further development of BSD City, as he said, in 2011 the company has set aside development costs of Rp1.6 trillion to develop BSD City which is now entering the second stage development.
Currently, BSDE City has been facilitated with hospitals, universities, commercial areas and industrial areas just like the other major cities in Indonesia.
The first stage development of BSD City which covered 1,500 ha of the total area is still in progress. While BSD City has entered second stage development area of 2,000 ha targeted to complete in 2020. Next he company will begin to conduct the third stage development of 2,450 ha.
In yesterday’s closing session, the stock was unchanged at Rp880 per share and established market capitalization of Rp15.39 trillion.

Disclosure: No position at the stock mentioned above.

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Duta Graha secures Rp2 trio contracts

Contractor PT Duta Graha Indah Tbk (DGIK), secured Rp2 trillion new contract in the middle of December, making the company’s order book at Rp3.6 trillion as per December 2010.
President Director of Duta Graha Indah, Dudung Purwandi said that the company seized such new contract referring to its contract achievement until Q3/2010 as much as Rp1.14 trillion and Rp851 billion in the Q4/2010.
“The high level of contract achievement during Q4/2010 occurs particularly as the government’s project fund disbursement that commonly reaches its highest level on the last quarter of the year,” he said yesterday.
According to him, the new contracts gained until 2010 were mainly backed by two new contracts amounting Rp442 billion, including two government projects in Sumatra and Jakarta. “Thus, the company’s target over the new contract in 2010 has been fulfilled.”
As per Q3/2010, nearly 70% of the company’s revenue or around Rp637 billion was generated from government’s projects while the remaining Rp273 billion or 30% was derived from private projects. In the other hand, Duta Graha’s revenue on its joint operation totaled Rp1.07 trillion or 58% of this year’s target as much as Rp1.83 trillion.
For Q3/2010, the company whose code stock DGIK, recorded Rp41.4 billion of net income or 55% of this year’s net income target, amounting Rp74 billion.
“The company’s new contract in 2010 rose to Rp2 trillion, compared to 2009’s achievement at Rp1.53 trillion, meaning that we posted 30% rise during 2010,” he said. 

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Indonesian shares is estimated to experience another gain today, although it was closed 0.46% or 16,76 points lower, touching 3,620.68 yesterday. The recommended stocks are PTBA, KLBF and AALI. So, what’s in the shopping list today as reported by Bisnis.com today:

eTrading Securities:

Jakarta Composite Index (JCI) may stand between 3,565 and 3,660 during today’s trading. Although it was closed 0.46% or 16.76 points lower to 3,620.68 it apparently still moves in bullish trend.

Yesterday, the foreign investors began to conduct stocks accumulation after recording net sell in five days in a row. The foreign investors booked IDR239 billion net buy on coal mining, automotive and banking stakes.

Reliance Securities:

Just few days before Christmas holiday, the trading activity is estimated to be less strenuous, making JCI to swing between 3,610 and 3,635. The recommended stocks are PTBA, KLBF, AALI, and LSIP.

Nevertheless, yesterday’s drop was mainly influenced by the negative sentiment due to the tumble of Japan’s trading surplus and the concern that the inflation risk might prompt China’s central bank to tighten its monetary policy.

Trimegah Securities:

The opportunity for JCI to record another gain still opens as it may swing within the range of 3,604 and 3,652. The recommended stocks are KLBF and SMGR. During yesterday’s trading, the market players who still doubted the global economy somewhat triggered the index’s fluctuation.

Disclosure: No position at the stocks mentioned above.

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Adhi karya gets Rp3.9 trio new contracts

The state-owned contractor PT Adhi Karya Tbk (ADHI) has secured Rp3.94 trillion additional new contracts in the last quarter of this year.
In a press statement today, Adhi Karya Corporate Secretary Kurnadi Gularso said one of the projects is Rp2.3 trillion steam-fueled power plant with capacity pf 2x100 MW in Balikpapan.
He said the company has also bagged contract of apron of terminal 3 at Soekarno-Hatta Airport worth Rp156 billion and the construction of flyover toll road from non Kampung Melayu-Tanah Abang worth Rp214 billion.
With those additional contracts, Adhi Karya believes to meet Rp8 trillion target of contracts in 2010.   

Disclosure: No position at the stock mentioned above.
 
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Tunas Baru eyes Rp200 bio net profit

Lampung-based palm oil producer, PT Tunas Baru Lampung Tbk (TBLA), targets a net income of Rp200 billion by next year, up 20% from the estimated Rp160 billion net income this year.

Deputy President Director of Tunas Baru Sudarmo Tasmin confirmed that the target increase is in line with the 15.38% sales growth to Rp3 trillion from this year's estimation at Rp2.6 trillion.

This optimism, as he added, is supported by the expectation for the sales volume increase in crude palm oil (CPO) to 180,000 tons and palm kernel oil (PKO) to 150,000 tons with the better weather forecast next year.

"We are targeting the bottom line to grow by 20% to Rp200 billion and the sales to reach Rp3 trillion. We hope CPO sales will rise 20%. So far the largest sales contribution comes from CPO products, besides there are also PKO," he said today.

Meanwhile, during the first nine months of this year, the company posted a net profit decline by 47% to Rp124.04 billion compared to Rp233.36 billion at the same period last year.

It was caused by the loss in sales volume by 9% to Rp1.92 trillion from Rp2.11 trillion and the increase in operating costs by 23% to Rp166.71 billion from Rp135.96 billion.

Sudarmo also said the income in third quarter of 2010 fell due to the foreign exchange loss by 49% to Rp63.81 billion from Rp124.39 billion at the same quarter last year.

 

Disclosure: No position at the stock mentioned above.
 
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Delta Dunia 11M overburden rises 3.7%

Coal mining contractor PT Delta dunia Makmur Tbk (DOID) reported flat coal production in November 2010 of 3.2 million tons and slightly lower overburden of 26.8 million bank cubic meter (-1.8% month on month).
In a morning note distributed by PT Mandiri Sekuritas today, Delta Dunia's 11M 2010 coal production and overburden achieved 31.9 million tons (+6.7% yoy) and 264.8 million bcm (+3.7% yoy) which inline representing 93% and 91% from revised FY10 target respectively
"Currently we do not have rating on the stock. Delta Dunia is traded at 15.0x – 11.5x PER10F-11F based on Bloomberg consensus," said the note.
Delta Dunia, parent of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), showed a better performance in the third quarter (July-September) of 2010 compared to the second quarter (2Q 2010).
In the first 9 months of this year, Delta Dunia posted Rp351.93 billion net income, Rp755.96 billion operating profit, and Rp4.19 trillion revenue.
The third quarter of 2010 reflected better performance compared to the 2Q result. Delta Dunia's 3Q 2010 revenue at Rp1.49 trillion was higher than Q2 and Q1 revenue which stood at Rp1.42 trillion and Rp1.28 trillion respectively.
In return, income from operations of the company in 3Q 2010 achieved Rp294.1 billion, higher than the previous two quarters of Rp231.82 billion (2Q) and Rp230.04 billion (1Q).
Operating margin in the 3Q showed a slight improvement from 17.09% in 2Q to 18.03%. Net income rose to Rp145.75 billion in 3Q 2010 from Rp55.54 billion in 2Q (the worst for the whole year). But the 3Q net income remained lower than the 1Q result of Rp150.64 billion. Delta Dunia today rose 2.10% to IDR1,460 per share, reflecting IDR9.91 trillion market capitalization.

Disclosure: No position at the stock mentioned above.

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Bukit Asam bags Rp63 bio on share sale

Indonesia’s state owned coal producer, PT Tambang Batu Bara Bukit Asam Tbk (PTBA), seized Rp63.08 billion proceed from shares sale in the market.
In the information disclosure unveiled to Indonesia’s Stock Exchange today, it was mentioned that Bukit Asam sold 2.88 million of shares after conducted buyback through IDX at Rp21,903 per share.
“The shares issuance generated from the buyback was conducted on 6-20 December,” said Bukit Asam’s President Director, Sukrisno in such information disclosure.
According to him, such corporate action corresponds to the regulation article 4 of Financial Institution and Capital Market Supervisory Agency Regulation No. IX B.2 on Buyback issued by Company or Publicly Listed Company.

Disclosure: No position at the stock mentioned above.

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CIC to join TPG, GIC in Delta Dunia deal

Coal mining contractor PT Delta Dunia Makmur Tbk (DOID) gained 12.16% in the last 3 days, following the take over of its parent, Northstar Tambang Persada Limited (NTP) by TPG Capital and Government of Singapore Investment Corporation (GIC).
Delta Dunia, controls Indonesia's largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), surged 6.72% to Rp1,430 per share.
"Besides TPG and GIC, Chinese Sovereign Wealth Fund China Investment Corporation [CIC] will join the consortium of TPG capital and GIC," several sources said.
CIC might announce its participation to acquire non-voting interest in NTP, controlling shareholder in Delta Dunia with 40% holding, this week or early next week.
"Initially, three parties, TPG Capital, GIC, and CIC intended to acquire the non-voting interest in NTP. However, CIC should be approved by Chinese government, so TPG and GIC took the action first and followed by CIC," the sources said.
A statement from NTP issued last Saturday said a consortium of affiliates and investment vehicles of U.S. private equity firm TPG and the Singapore fund, known as GIC, had made the investment.
"TPG Capital, GIC, and CIC acquire non-voting interest in NTP from Widjaja family, Sinarmas Group, and Bakrie Group at about IDR3.26 trillion," the sources said.
A British Virgin Island-based NTP received a transfer of 40% holding in Delta Dunia from Singapore-based company namely Northstar Tambang Persada Pte Ltd at IDR2.99 trillion or at par of IDR1,100 per share on December 4 2010.
NTP Director Glenn T. Sugita hasn't answered a confirmation sent via a short message service this morning.
TPG Capital is the global buyout group of TPG, a leading private investment firm founded with US$48 billion in assets under management. GIC manages Singapore's foreign reserves. The sovereign wealth fund's portfolio is valued at more than US$185 billion.
CIC provided a US$1.9 billion high cost loan facility to Indonesia's largest thermal coal exporter PT Bumi Resources Tbk (BUMI) late last year.
UBS Investment Research in a company report published on December 6 2010, has raised Delta Dunia's price target from IDR1,940 per share to IDR2,230.The raise of the price target reflects the lower interest expense ahead.
"We continue to derive our price target using discounted cash flow methodology. Our operational assumptions are unchanged," said UBS analyst Felicia Tandiyono in her report.
"We would likely view such sales to third parties positively because it could provide clarity on the ultimate owner of DOID through NTP."

Disclosure: No position at the stock mentioned above.

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Sinosure to bankroll BATR for US$1 bio

The state-owned coal miner PT Tambang Batubara Bukit Asam Tbk’s subsidiary, PT Bukit Asam Transpacific Railway, will seize US$1 billion from China Export and Credit Insurance Corp (Sinosure) to bankroll an integrated coal-transporting project.
President Director PT Bukit Asam Transpacific Railway (BATR) Rudiantara said that the company is in intensive talks with Sinosure, the Chinese state-owned financial institution, to bankroll the mega-project of coal-transporting train and infrastructure supporting logistics and ports.
“The Chinese financial institution is our good friend. It means that they are ready to finance the project. We expect that the financing scheme from Sinosure will be completed by the middle of next year,” he said as reported by Bisnis today.
With total value of US$1.9 billion, the integrated train project in South Sumatra is a joint venture of Rajawali Group and PT Tambang Batubara Bukit Asam (PTBA). The project is expected to accomplish by 2014.
The joint venture, dubbed as BATR, focuses in constructing a 307-km railway, starting from Banko Tengah, Tanjung Enim Sumatra Selatan to Srengsem, Lampung. Apart from the construction of the railway, BATR also handles logistics and port.
Aside from BATR, Rajawali and PTBA are also working together in coal producing under the name of PT Bukit Asam Banko (BAB), with 35% stakes belong to Transpacific Railway Infrastructure and the other 65% belong to PTBA. BAB, as a coal contractor, is expected to produce coal as much as 27 million ton a year.

Disclosure: No position at the stock mentioned above.  

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Surya Semesta profit to reach Rp100 bio

Property developer PT Surya Semesta Internusa Tbk is seeking a consolidated net income of more than Rp100 billion at end of this year.
Of the consolidated net income, the company estimates Rp65 billion coming from continuing operations.
Surya Semesta, in an official statement submitted to Indonesia Stock Exchange yesterday evening, estimates that 2010 net income to rise 5 folds compared to Rp17.6 billion last year. 
The income rise is fully underpinned by a steep increase in net income of the company's subsidiary dubbed PT Suryacipta Swadaya (SCS), developer of Suryacipta City industrial estate managing 1,400 hectares land in Kerawang, West Java.
By December 2010, SCS is projected to sell 41 hectares of land, a sharp increase from 5 hectares last year.
SCS and Surya Semesta's subsidiary namely PT TCP Internusa (TCP), owner of Graha Surya Internusa and Glodok Plazadi buildings, are estimated to contribute 54% of consolidated net income for Surya Semesta and 14% of consolidated revenue.
In addition, Surya Semesta's consolidated net income is underpinned by contractor company PT Nusa Raya Cipta which 83.3% owned by Surya Semesta.
In hotel business, Surya Semesta's subsidiary PT Suryalaya Anindita International, owner of Grand Melia Hotel Jakarta and Melia Bali Villas & Spa Resort, estimates to post a stable revenue in 2010.

 

Disclosure: No position at the stock mentioned above. 

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Stock recommendations today

Indonesian shares potentially continue its gain during today’s trading. The recommended stocks are INCO, INDY, AALI, and ANTM. So, what’s in the shopping list today as reported by Bisnis,com today:

Trimegah Securities:
Jakarta Composite Index (JCI) is estimated to continue its gain today and it may swing within the range of 3,609 and 3,663. The recommended stocks are INCO, INDY and LSIP.

Yesterday, the index was closed 1.92% (68.63 points) higher to 3,637.44 following the improved positive sentiment and the subsided concern over the Korean dispute. Yesterday’s gain was mainly propelled by commodity based stocks.

e-Trading Securities:
The index today may stand between 3,565 and 3,664 with some recommended stocks such as INDF, ICBP, AALI and GJTL. The index seems to penetrating the bullish area, thus it potentially book another rise today.

In addition, the foreign investors recorded IDR163 billion of net buying yesterday particularly in the automotive and coal mining stakes.

Erdikha Sekuritas:
JCI may stand between 3,600 and 3,690 with some recommended stocks such as ANTM, BBTN, INDF and BBRI. Technically, the index begins to indicate a rise. Some blue-chip stocks apparently begin to experience a technical rebound. During yesterday trading, the mining stocks turned out to be the main driver to the gain.

Disclosure: No position at the stock mentioned above.

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KKGI domestic coal sales to rise 300%

PT Resource Alam Indonesia Tbk (KKGI) has signed a new contract to supply 500,000 metric tons of coal to PT Perusahaan Listrik Negara (PLN) in 2011. 

In the last 3 years, KKGI coal sales for domestic market is always below 10%, it even only 3.7% in 3Q 2010. In 2010, KKGI has signed a contract with PLN to sell 120,000 metric tons of coal, its only 5.4% of KKGI production target. 

This contract will jack up KKGI domestic sales about 300% next year and it will contribute around 15% of its total sales.

With reliable amount of 41 million metric tons mineable coal deposits which spread in 11 mining site, the company has promising coal production ahead.

Currently, the company already operating 6 mining site out of 11. This 6 mining sites are estimated to produce about 2.21 million metric tons this year or more than doubled last year production.

In 2011, Resource Alam plans to open 3 or 4 new mining site to increase its production to reach 3.42 million metric tons, its about 55% increase from production target for 2010.

"We assumed KKGI will have 9 operating mining site by the end of next year, there is still room for another production growth considering there still 2 not yet operated mining site," said a company report published by PT Pemeringkat Efek Indonesia (Pefindo) on December 20.

Resource Alam was established in 1986, engaged in adhesive manufacturer for plywood supporting industry.

When the industry began to decline due to decreasing of plywood manufacturer activity, KKGI started its coal mining business in 2006 through its wholly owned subsidiary, PT Insani Baraperkasa.

The company has coal mining concessions with total of 41 million metric tons mineable reserves in East Kalimantan, the areas are; Simpang Pasir, Bayur, Tani Bakti, Gunung Pinang, Loajanan, Separai, Perangkat and Maukiri.

In 2009, KKGI succeed to record 1.01 million metric tons coal production or increase 30.5% YoY, and KKGI’s coal production already reach 1.56 million metric tons in 3Q 2010.

Disclosure: No position at the stock mentioned above.  

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G-Resources finds gold in Martabe

G-Resources, a Hong Kong-based gold and silver mining company, found a new gold mining zone in Martabe, South Sumatra, and instantly started drilling to test the target zone.
G-Resources Group Limited President Director Peter Albert mentioned the name of the prospect zone is Horas, which has been previously called as Barani Selatan. The zone is located 3 km from Martabe construction project.

“We are glad to have this early finding in Horas. It confirms that there is a potential of large gold contents in Martabe in general. We have been preparing for the drilling in Horas,” Peter said in a press release today.

Peter added that the company will continue the expansion of exploration program aggressively after the finding. Three core drill rigs have been finished as the integrated part of exploration program, and those three drilling holes confirmed the significant amount of potential gold.

“Concerning construction process, Martabe is expected to start production in 2011 with target annual gold production at 250,000 ounces and silver at 2 million up to 3 million ounces,” he said. 

G-Resources claimed that Martabe has resources as much as 6.5 million ounces of gold and 66 million ounces of silver. 

Moreover, G-Resources also said that its gold reserves in Martabe reach 2.7 million ounces and its silver reserves are 32.8 million ounces. 

Disclosure: No position at the stock mentioned above.

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Danareksa sets bond at 8.875%-10.75%

The state-owned financial company PT Danareksa (Persero) sets its Rp500 billion bond coupons at 8.875% to 10.75%.

At a public expose held today, coupon for Danareksa's 3-year V bond of series A is set at level 8.875% up to 9.626%. Meanwhile, the coupon for its five-year series B is 9.625% up to 10.375%.

President Director of Danareksa Edgar Ekaputra revealed about 66% or Rp330 billion of the proceeds from the bond issuance is to be used for repaying Danareksa IV bond issued in 2009 and Danareksa III bond issued in 2008.

"Danareksa IV Bond valuing Rp200 billion will mature on April 14, 2011, and Danareksa III bond worth Rp130 billion matures on June 20, 2011," he said today. 

Meanwhile, 20% or Rp100 billion of the proceeds from the bond issuance is to be used as the paid-in capital for its new subsidiary, i.e. PT Danareksa Capital. The rest of 14% will be used for short-term investments.

Regarding the establishment of Danareksa Capital, Director of Danareksa Heru D. Adhiningrat said the company is seeking for energy financing, particularly hydropower plant. In addition, Danareksa’s subsidiary is also targeting infrastructure financing.

Disclosure: No position at the stock mentioned above.
 
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Djarum boosts stake in BCA

Djarum Group jacks up its domination as the largest owner of PT Bank Central Tbk (BCA) by purchasing 515 million shares from UBS Securities.

Djarum completed this purchase through its subsidiaries, PT Tricipta Mandhala Gumilang and PT Caturguwiratna Sumapala. Both units are the controlling shareholders of PT Sarana Menara Nusantara Tbk.
“Through Credit Suisse, it [Djarum] buys 515 million BCA shares at Rp6,700 per share from UBS Securities,” a person familiar with the deal told Bisnis.com today.

According to the person familiar with the matter, Djarum Group now holds 50.24% of BCA shares after taking over 515 million shares, which equals to 2.25%.
Djarum is a business belonging to Hartono brothers, Robert and Michael. These two tycoons, with fortune as much as US$1.1 billion, have recently been listed as the richest people in Indonesia by Forbes.
Vice President BCA Jahja Setiaatmadja declined to comment when Bisnis asked him for confirmation.

Disclosure: No position at the stock mentioned above.

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Bakrie to refinance Ascention debts

Bakrie family's holding company, PT Bakrie & Brothers Tbk (BNBR), will use US$109 million from equity linked notes issuance to refinance some part of debt to Ascention Ltd.

"Some part of the notes will be used to refinance debt to Ascention. There is no additional new loan," said Bakrie & Brothers CFO Eddy Soeparno today

By refinancing Ascention debt, he said, the company will extend the maturity from 1 year to 5 year. Bakrie & Brothers secured two series of loan facilities from Ascention Ltd, Seychelles.

On February 3, 2010, Bakrie received IDR400 billion loan from Ascention or equivalent to US$42,11 million. This loan is secured by 761,90 million shares Bakrie Sumatera Plantations and 50,79 million Bakrie Plantations warrants. The loan is charged with annual interest of 15%.

As of September 30 2010, the balance amounted to Rp310 billion. Bakrie also obtained US$128 million loan from Ascention Ltd on February 5, 2010. The proceeds will be used for investment activities. The loan will be due on March 30 2012 and can be settled by cash or convertible bonds.

Bakrie & Brothers' Director and Corporate Secretary R.A. Sri Dharmayanti said that such note was issued on December 16 2010 after Bakrie signed a subscription agreement with Eurofa Capital Investment Inc.

“The notes mature on 16 December 2015,” she said. In such information disclosure, Bakrie did not specify the future aim of the proceed derived from the notes issuance.

Sri Dharmayanti added, referring to the agreement, the notes holder have the rights to convert the principal amount of the notes into Bakrie & Brothers’ stocks.

Nonetheless, when Bakrie is required to give the stock to the notes holder, the company poses the option to pay at the most US$109 million to the notes holder in order to fulfill the entire or part of such conversion rights.

Besides, the note holders may ask Bakrie to pay the entire or half of such principal amount according to the agreement of equity linked notes. Such notes issuance is not categorized as a material transaction.

Disclosure: No position at the stock mentioned above.