Indonesia Market Summaries 27 June 2013

• PT Elang Mahkota Teknologi Tbk (EMTK, Rp6.600) opened two corporate acquisition opportunities in the field of IT and media with a total valuation of more than Rp1 trillion. This two company engaged in the business of media content and media portals.
  
  The acquisition of this two companies expected could be completed this year, preceded by transaction of media content company acquisition whose transaction value is smaller. Acquisition funds will come from internal cash. Based on the financial statements, internal cash EMTK have reached Rp3, 7 trillion. (Bisnis Indonesia)

• Otoritas Jasa Keuangan (OJK / Financial Services Authority) is currently reviewing the use of bond index as a parameter to the development of trade bonds and sukuk.
  
  The plan, bond index will be issued by the Indonesia Bond Pricing Agency (IBPA), although the OJK to consider if there are other parties than the IBPA can provide bond index.

• PT Bakrieland Development Tbk (ELTY, Rp50) sell two assets in Bali and Bukit Jonggol. The total transaction reaches Rp2, 9 trillion. ELTY assets that are sold in Bali is Bali Nirwana Resort and the transaction reportedly has entered the final stage.
  
  In fact, the asset of Nirwana Bali area of ​​103 hectares (ha) in Tanah Lot, Bali, has also been sold entirely to the MNC Group. The sale of assets was done in two phases, the first phase of 49% in May 2013 and the remaining 51% in June. (Kontan)
• PT Nusa Raya Cipta Tbk (NRCA, Rp1.000) up 17.64% to Rp 1,000 per share from the set price Rp 850 per share, on its trading debut June 27, 2013.
  
  The Company offers a stock as much as 306,1 million shares with a nominal value of Rp100. Initial implementation of the company's stock price set Rp850 per share. The funds will be gained from the stock offering around Rp 260,17 billion. The funding will be used by the company, for a variety expansion this year. (Inilah.com)

for Indonesia Market Summaries 27 June 2013

Indonesia Market summaries 17 June 2013

PT Berau Coal Energy Tbk (BRAU, Rp186) plans to refinance bonds that financed by its subsidiary. This plan is one of the general meeting of shareholders (EGM) Agenda of the company that will be held on June 29.

BRAU financial statements show that the company's debt securities was issued by Berau Capital Resources Pte Ltd for U.S. $ 450 million with 12.5% ​​interest per year due 2015. BRAU also publishes its own senior debt securities, worth U.S. $ 500 million with 7.25% interest due 2017. (BRAU Disclosure)

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Property company of Bakrie Group, PT Bakrieland Development Tbk (ELTY, Rp50) sells its land assets to PT Sinar Mas Teladan, a subsidiary of PT Bumi Serpong Damai Tbk. The sale of 2.4 hectares of land area was made by PT Superwish Perkasa, an ELTY subsidiary for Rp 747,63 billion. ELTY was reported loss in 2012 amounting to Rp 1,1 billion. (Bisnis Indonesia)

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Lippo Group will publish real estate investment fund products (DIRE / real estate investment trusts / REITs) again. Derivative products valued at USD 638 million will be listed on the Singapore Exchange through Union Enterprise Ltd.

Two previous Riady family REITs products such as health and mall properties, ie FIRST REITs and Lippo Malls Indonesia Retail Trust (LMIRT). (Kontan)

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PT Sri Rejeki Isman Tbk (SRIL, Rp255) Shares up on its first day on the stock exchange. Once registered and rise up to 6.23% from Rp240 listing price, the stock traded Rp626,6 billion in market at the issue price (Rp240) and boost the value of the transaction.

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PT Intiland Development Tbk (DILD, Rp550) will offer bonds I/2013. The bond valued (Rated A) at Rp500 billion will be a 3-year and 5-year tenure. (Investor Daily)

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PT Bank Mayapada International Tbk (MAYA, Rp1.150) immediately offered subordinated bonds III/2013. Bonds worth Rp700 billion was rated BBB+ and 7-year tenure. (Bisnis Indonesia)

for Indonesia Market summaries 17 June 2013

BKSL to buy back PT Bukit Jonggol Asri from ELTY

BKSL to buy back PT Bukit Jonggol Asri from ELTY

According to local news, Sentul City plans to buy at most 20% stakes in PT Bukit Jonggol Asri (BJA) from Bakrieland with a transaction value of approximately Rp300-500bn. The news’ source admitted that BKSL is still negotiating regarding the number of shares they are planning to buy back as well as the transaction value. As of now, ELTY is still the major shareholder of BJA, owning 51% while the rest is owned by BKSL. Should the transaction go through, BKSL will become the major shareholder with 69% stakes. BKSL is said to use standby bank loans and internal cash for the buy back. (Investor Daily)
Comments: As of FY12, BKSL has a net cash of Rp76bn and net gearing of 11%, which is at the lower end leading us to believe that they still have room for debt.

ELTY failed to expedite their USD155mn bond payment

Bakrieland was unable to fulfill their plan to expedite the payment of their USD155mn bond issued by their subsidiary in Singapore, BLD Investment Pte Ltd. The unsecured guaranteed equity linked bond was issued in March 23, 2010 and has a tenor of 5 years, but the company claimed that they were planning to pay it back by March 23, 2013. ELTY claimed that they have been restructuring the bond with the holders since February 2013. The bondholders are currently starting a coordinating committee to discuss the issue further. (Kontan)

Presidential decree for inter-province monorail project update

Vice Transportation minister, Mr. Bambang Susantono, stated that Presidential decree for inter-province monorail project will be issued by end of this semester. The decree will then be a legal basis for monorail project execution in Jabodetabek. He also added that the decree may include Adhi Karya (ADHI) appointment as the coordinator for public transportation projects. Consisted of Len Industri, PT Industri Kereta Api, Telekomunikasi Indonesia, Jasa Marga and Bank Mandiri, ADHI consortium will be appointed directly to execute the ~45km monorail projects (Kontan)

Budget disbursement remains slow along 1Q13

Government’s budget disbursement was still sluggish in 1Q13, only reaching 5.63% of total government target of Rp184.4tn. The realization figure was lower 1% - 2% than the same period of 2012. Thus, the Ministry of finance is concern if the budget disbursement could not be improved going forward, then most of it will likely be disbursed during the end of the year (Kontan).