Jan 11, 2012

Royal Oak to takeover 5 developers

PT Royal Oak Development Asia Tbk (RODA) has decided to focus its business in the property industry, giving the company a chance to takeover three or five other developers this year.
"The acquisition is estimated between Rp500 billion to Rp1 trillion," said Nio Yantony, RODA President Director, in a public expose as quoted by Kontan today.
According to him, the target companies have their projects or land bank in Jakarta. However, Nio declined to explain the source of financing.
Royal Oak plans to spend Rp1 trillion capital expenditure, excluding the takeover financing. He said the capex will be funded by internally cash flow, bank loan facilities, and pre-sales marketing. The company estimates to post Rp1.2 trillion revenue and Rp150 billion net profit this year.

Disclosure: No position at the stock mentioned above.

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