Government must inject at least US$400 million to reactivate Texmaco Grup PT Polysindo Eka Perkasa, one of the assets of Texmaco that have some IDR29.37 trillion debt to State Assets Management Company (PPA).
The President Director of PPA Mohammad Syahrial said that the company maybe will re-tender Texmaco.
The total loan of PPA at engineering division of Texmaco is US$1.48billion, while the loan at textile division is US$833.93 million. The other loan is on letter of credit of US$87.36 million so that the total loan of PPA is US$2.98 billion
Tuesday, February 27, 2007
Antam Searches for US$70 Million loan for Alumina
PT Aneka Tambang Tbk (Antam) has been planning to get US$50 million - US$70 million loan to finance the project of Chemical Grade Alumina Tayan (CGA) with the total investment of US$250 million.
In the meantime, Japan Bank for International Cooperation (JBIC) has committed to finance 60% of the investment if the feasibility study concludes that the business is prospective.
The Finance Director of Antam Kurniadi Atmosasmito said that the feasibility study should have been concluded next month.
"We have asked ANZ to review the feasibility study of the project and it should be finished next March. If the project is prospective, we will start the project next year," he said to me when T meet him last week.
Antam has established a joint venture with Showadenco and Marubeni of Japan and Malaysian Smelting Corporation to develop the project of CGA in Tayan of West Kalimantan.
The deal has been signed by the four parties on March 31 2006 with the composition of ownership of Antam 49%, Showadenco and Marubeni 36%, and Malaysian Smelting Corporation 15%.
In the meantime, Japan Bank for International Cooperation (JBIC) has committed to finance 60% of the investment if the feasibility study concludes that the business is prospective.
The Finance Director of Antam Kurniadi Atmosasmito said that the feasibility study should have been concluded next month.
"We have asked ANZ to review the feasibility study of the project and it should be finished next March. If the project is prospective, we will start the project next year," he said to me when T meet him last week.
Antam has established a joint venture with Showadenco and Marubeni of Japan and Malaysian Smelting Corporation to develop the project of CGA in Tayan of West Kalimantan.
The deal has been signed by the four parties on March 31 2006 with the composition of ownership of Antam 49%, Showadenco and Marubeni 36%, and Malaysian Smelting Corporation 15%.
Mitsubishi Takes Over a 50% Stake in Kangean Block
Mitsubishi Corp. (Japan) is going to seize a 50% participating interest in Kangean PSC block, one of PT Energi Mega Persada Tbk's assets, after the sales and purchase agreement may be signed last night, Bisnis Indonesia reported.
The Japanese conglomeration is likely to beat Marubeni Corp. and Kuwait Foreign Petroleum Exploration Company (Kufpec) in the competition for Kangean block.
"Mitsubishi bids US$720 million for 100% participating interest or US$360 million [around IDR3.26 trillion] for a 50% working interest," confided the executive who knew the transaction.
The Japanese conglomeration is likely to beat Marubeni Corp. and Kuwait Foreign Petroleum Exploration Company (Kufpec) in the competition for Kangean block.
"Mitsubishi bids US$720 million for 100% participating interest or US$360 million [around IDR3.26 trillion] for a 50% working interest," confided the executive who knew the transaction.
Monday, February 26, 2007
Bank Niaga Posts 18% Rise in 2006 Profit on Lending
PT Bank Niaga, an Indonesian bank controlled by Malaysia's second-largest lender, said 2006 profit rose 18 percent as lending increased.
Net income rose to 648 billion rupiah ($71 million) in the 12 months ended Dec. 31, from 547 billion rupiah a year earlier, Bank Niaga said in a statement in the Jakarta.
Bank Niaga's net interest income, or revenue from borrowers after deducting interest paid to depositors, rose 28 percent to 2.21 trillion rupiah. Bank Niaga is more than 60 percent owned by Malaysia's Bumiputra-Commerce Holdings Bhd.,
Net income rose to 648 billion rupiah ($71 million) in the 12 months ended Dec. 31, from 547 billion rupiah a year earlier, Bank Niaga said in a statement in the Jakarta.
Bank Niaga's net interest income, or revenue from borrowers after deducting interest paid to depositors, rose 28 percent to 2.21 trillion rupiah. Bank Niaga is more than 60 percent owned by Malaysia's Bumiputra-Commerce Holdings Bhd.,
Sunday, February 25, 2007
BRI Cancel Acqusition Plan On UFJ Finance
PT Bank Rakyat Indonesia Tbk reviewed its plan to acquire 55% shares of PT UFJ Finance, a joint venture financing company of UFJ Bank of Japan.
"We cancel the plan to buy UFJ," said the President Director of BRI Sofyan Basir in Jakarta yesterday.
He said BRI has planned to acquire local banks to support inorganic growth of its sharia banking unit as the bank will separate the unit in June 2007.
Reportedly BRI has prepared IDR940 billion to buy some shares at the financing company. BRI had the stake of 45% at the financing company, while its Japanese partners controlled the rest 55%.
"We cancel the plan to buy UFJ," said the President Director of BRI Sofyan Basir in Jakarta yesterday.
He said BRI has planned to acquire local banks to support inorganic growth of its sharia banking unit as the bank will separate the unit in June 2007.
Reportedly BRI has prepared IDR940 billion to buy some shares at the financing company. BRI had the stake of 45% at the financing company, while its Japanese partners controlled the rest 55%.
Thursday, February 22, 2007
BII Profit Falls 13% on Provis
PT Bank Internasional Indonesia, partly owned by South Korea's largest lender, Kookmin Bank, said profit fell 13 percent last year after it set aside more money to cover bad loans.
Net income fell to 634 billion rupiah ($70 million) in 2006 from 725 billion rupiah a year earlier, the bank said in a faxed statement in Jakarta today. Bad-loan provisions more than tripled to 702 billion rupiah from 183 billion rupiah.
Bank Indonesia raised its policy rate to 12.75 percent in December 2005, before starting to cut borrowing costs in May, to stem inflation from the government's move to more than double fuel prices. That led to a spate of delinquencies, the Jakarta- based bank said id.
"Consumer default rates, particularly in the auto industry, rose in 2006, driven by the interest-rate increase, lower consumer confidence and spending,'' the bank said.
Net interest income rose 12 percent to 2.62 trillion rupiah in the period. The company's shares fell 2.3 percent to 215 rupiah in Jakarta today.
Net income fell to 634 billion rupiah ($70 million) in 2006 from 725 billion rupiah a year earlier, the bank said in a faxed statement in Jakarta today. Bad-loan provisions more than tripled to 702 billion rupiah from 183 billion rupiah.
Bank Indonesia raised its policy rate to 12.75 percent in December 2005, before starting to cut borrowing costs in May, to stem inflation from the government's move to more than double fuel prices. That led to a spate of delinquencies, the Jakarta- based bank said id.
"Consumer default rates, particularly in the auto industry, rose in 2006, driven by the interest-rate increase, lower consumer confidence and spending,'' the bank said.
Net interest income rose 12 percent to 2.62 trillion rupiah in the period. The company's shares fell 2.3 percent to 215 rupiah in Jakarta today.
Wednesday, February 21, 2007
Koba Tin Close, Timah Jump
The share price of PT Timah has increased as PT Koba Tin, another tin mining company in Indonesia, has interrupted its operation.
The Chief Operating Officer Malaysia Smelting Corp Lai Fook Hoy said that Koba Tin has stopped its operation on January 30 this year, and it will be for long time, as the three directors of the company have bought illegally mined iron ores.
Good news for Indonesia and PT Timah
The government has issued such regulation as the illegal mining on tin has been uncontrolled and it has been endangered the environment. Apart from that, the new regulation also has regulated that the exported tin shall be with the tin content of 99.85%.
Indonesian export of tin bricks during the first nine months of 2006 was US$163 million, down from US$903.8 million in the previous year.
The Chief Operating Officer Malaysia Smelting Corp Lai Fook Hoy said that Koba Tin has stopped its operation on January 30 this year, and it will be for long time, as the three directors of the company have bought illegally mined iron ores.
Good news for Indonesia and PT Timah
The government has issued such regulation as the illegal mining on tin has been uncontrolled and it has been endangered the environment. Apart from that, the new regulation also has regulated that the exported tin shall be with the tin content of 99.85%.
Indonesian export of tin bricks during the first nine months of 2006 was US$163 million, down from US$903.8 million in the previous year.
Tugu Pratama On Sale
The State Assets Management Corporation (PPA) has planned to sell its shares at some insurance companies to met the revenue target of IDR1 trillion for the state budget of 2007.
PPA has got the shares at some insurance companies like PT Tugu Pratama Indonesia, PT Tugu Reasuransi Indonesia, PT Asuransi Tugu Kresna Pratama, PT Asuransi Putra Mandiri and PT Asuransi Jiwa Tugu Mandiri.
PT Tugu Pratama is a general insurance company with the specialty of oil industry. But since 2005 the company has also jumped into sharia business. Starting 2007, PT Tugu Pratama will jump into retail market after it has controlled 16% of corporate market.
PPA has got the shares of the company from IBRA in 2004. IBRA got the 17.5% shares of Tugu Pratama from Bob Hasan. The process of taking over the shares was time consuming as Bob Hasan has claimed he just owned 3.5% of the 35% shares recorded at the insurance company. The rest 31.5%, he said, belong to Nusamba Foundation.
Tugu Pratama controls 100% shares at PT Tugu Pratama Interindo (TP Interindo), the owner of 30% shares of PT Tugu Reasuransi Indonesia (Tugu Re). PPA also holds 30% shares at the reinsurance company. The other shareholders of Tugu-Re are Bambang Trihatmojo (20%) and the Pension Fund of Pertamina (20%).
TP Interindo also own 10% shares at PT Tugu Mandiri Life Insurance in which PPA controls 30% shares, and Pension Funds of Pertamina and Timah hold 40% and 20% shares respectively.
PT Tugu Reasuransi Indonesia has been the second largest reinsurance company in Indonesia. The company has had some overseas exposures and starting this year the company has been in sharia business.
PPA has got the shares at some insurance companies like PT Tugu Pratama Indonesia, PT Tugu Reasuransi Indonesia, PT Asuransi Tugu Kresna Pratama, PT Asuransi Putra Mandiri and PT Asuransi Jiwa Tugu Mandiri.
PT Tugu Pratama is a general insurance company with the specialty of oil industry. But since 2005 the company has also jumped into sharia business. Starting 2007, PT Tugu Pratama will jump into retail market after it has controlled 16% of corporate market.
PPA has got the shares of the company from IBRA in 2004. IBRA got the 17.5% shares of Tugu Pratama from Bob Hasan. The process of taking over the shares was time consuming as Bob Hasan has claimed he just owned 3.5% of the 35% shares recorded at the insurance company. The rest 31.5%, he said, belong to Nusamba Foundation.
Tugu Pratama controls 100% shares at PT Tugu Pratama Interindo (TP Interindo), the owner of 30% shares of PT Tugu Reasuransi Indonesia (Tugu Re). PPA also holds 30% shares at the reinsurance company. The other shareholders of Tugu-Re are Bambang Trihatmojo (20%) and the Pension Fund of Pertamina (20%).
TP Interindo also own 10% shares at PT Tugu Mandiri Life Insurance in which PPA controls 30% shares, and Pension Funds of Pertamina and Timah hold 40% and 20% shares respectively.
PT Tugu Reasuransi Indonesia has been the second largest reinsurance company in Indonesia. The company has had some overseas exposures and starting this year the company has been in sharia business.
Admiro Cancels Plan to Takeover BTPN
Admiro Corp has cancelled its plan to takeover 71.6% shares of PT Bank Tabungan Pensiunan Nasional (BTPN) as some requirements are not met. It has been informed to the central bank.
"The transaction is cancelled as some requirement could not be met. There is no payment yet except some small down payment," the President Director of PT Recapital Investment Bank Rosan Perkasa Roeslani told to me yesterday.
Admiro has signed the sales and purchase agreement over 71.6% shares of BTPN on December 7 2005 at the price of 1.75 times to book value. With such cancellation the bank still belongs to Bakrie Capital (10%), Rifan Group (22.61%), Danatama Makmur (18%), and Fuad Mansur (20%).
Admiro is the special purpose vehicle of Recapital to acquire BTPN. The company will get US$46 million loan arranged by Credit Suisse. The cash will be able to buy 60% of the 71.6% shares of BTPN.
"The transaction is cancelled as some requirement could not be met. There is no payment yet except some small down payment," the President Director of PT Recapital Investment Bank Rosan Perkasa Roeslani told to me yesterday.
Admiro has signed the sales and purchase agreement over 71.6% shares of BTPN on December 7 2005 at the price of 1.75 times to book value. With such cancellation the bank still belongs to Bakrie Capital (10%), Rifan Group (22.61%), Danatama Makmur (18%), and Fuad Mansur (20%).
Admiro is the special purpose vehicle of Recapital to acquire BTPN. The company will get US$46 million loan arranged by Credit Suisse. The cash will be able to buy 60% of the 71.6% shares of BTPN.
Texmaco's Prices
PT Cipta Raharja Investama has bid the assets of Texmaco Group at US$70 million, Bhakti Asset Management at US$45 million, and Amerasia International Ltd at US$10 million.
My source took the bid price is to low. But in the other side floor price for Texmaco Grup so high.
The State Assets Management Corporation has decided that there is no winner on the auction of the IDR29.37 trillion assets of Texmaco Group as the offering price has been lower than that required by the Ministry of Finance.
Of the three investors, Cipta Raharja is the only investor having no relationship with big group of company or high rank officials.
Some said Amerasia International belongs to Rini M. Soemarno, the former President Director of Astra Group and the Trade and Industry Minister of President Megawati Sukarnoputri. Behind Amerasia are Bakrie Group and Danatama Makmur, and some businessmen and high rank officials have been behind Danatama.
On the other hand, there are also some high ranking officials and businessmen behind Bhakti Asset Management.
The source has said that Bhakti Asset Management has been planned to handle the textile division of Texmaco, and Amerasia will handle the division of engineering. Behind Bhakti, there are Spinaker and Asia Debt Management, the creditor of PT Polysindo, a unit of Texmaco Group.
The most important quest is whats the option plan for solving the Texmaco Group problem ???
My source took the bid price is to low. But in the other side floor price for Texmaco Grup so high.
The State Assets Management Corporation has decided that there is no winner on the auction of the IDR29.37 trillion assets of Texmaco Group as the offering price has been lower than that required by the Ministry of Finance.
Of the three investors, Cipta Raharja is the only investor having no relationship with big group of company or high rank officials.
Some said Amerasia International belongs to Rini M. Soemarno, the former President Director of Astra Group and the Trade and Industry Minister of President Megawati Sukarnoputri. Behind Amerasia are Bakrie Group and Danatama Makmur, and some businessmen and high rank officials have been behind Danatama.
On the other hand, there are also some high ranking officials and businessmen behind Bhakti Asset Management.
The source has said that Bhakti Asset Management has been planned to handle the textile division of Texmaco, and Amerasia will handle the division of engineering. Behind Bhakti, there are Spinaker and Asia Debt Management, the creditor of PT Polysindo, a unit of Texmaco Group.
The most important quest is whats the option plan for solving the Texmaco Group problem ???
Tuesday, February 20, 2007
Sugiharto Propose BTN IPO
Ministry of State Owned Enterprises (MSOE) will propose the initial public offering (IPO) plan of the Bank Tabungan Negara (BTN).
BTN has planned to issue some bonds. The total value of the bonds will be IDR1.5 trillion. With such bonds, the bank was sure to get enough capital to expand its mortgages.
BTN has planned to issue some bonds. The total value of the bonds will be IDR1.5 trillion. With such bonds, the bank was sure to get enough capital to expand its mortgages.
PPA Reject Divestment Texmaco Group
The State Assets Management Corporation (PPA) has rejected the proposal of three investors to acquire the assets of Texmaco Group as they bidding price below the floor price.
The three companies, are PT Bhakti Aset Management, PT Amir Asia International Ltd, and PT Cipta Raharja Investment BV. "The three companies are eligible to take part in the tender. But the bid price below the floor price," said Corporate Secretary PPA Renny O. Rorong this night.
Since December 22 2006, PPA has started the program to sell credit assets of Texmaco.
PPA will use the cash to cover the state budget deficit of 2007. The value of the assets is based on the assessment of PT Bahana Securities and PT Satyatama Graha Tara. Based on such assessment, the Finance Minister will take the decision on the floor price of the asset.
PPA has assigned PT Indo Premier Securities to sell the credit asset of Texmaco Group. PPA also has assigned the law office of Marsinih, Martoadmodjo Iskandar and Kusdiharjo (MMIK) as the legal consultant.
The total debt of technical unit of Texmaco is US$1.48 billion, while the debt of the textile unit is US$833.93 million, and the debt on letter of credit is US$87.36 million so that the total debt of Texmaco to PPA is US$2.98 billion.
Texmaco Group owns three facilities in Karawang, Kali Wungu of Semarang, and Subang of West Java at the total areas of 1,125 hectares. Some 850 hectares of the total areas are the land of the engineering division in Subang.
The three companies, are PT Bhakti Aset Management, PT Amir Asia International Ltd, and PT Cipta Raharja Investment BV. "The three companies are eligible to take part in the tender. But the bid price below the floor price," said Corporate Secretary PPA Renny O. Rorong this night.
Since December 22 2006, PPA has started the program to sell credit assets of Texmaco.
PPA will use the cash to cover the state budget deficit of 2007. The value of the assets is based on the assessment of PT Bahana Securities and PT Satyatama Graha Tara. Based on such assessment, the Finance Minister will take the decision on the floor price of the asset.
PPA has assigned PT Indo Premier Securities to sell the credit asset of Texmaco Group. PPA also has assigned the law office of Marsinih, Martoadmodjo Iskandar and Kusdiharjo (MMIK) as the legal consultant.
The total debt of technical unit of Texmaco is US$1.48 billion, while the debt of the textile unit is US$833.93 million, and the debt on letter of credit is US$87.36 million so that the total debt of Texmaco to PPA is US$2.98 billion.
Texmaco Group owns three facilities in Karawang, Kali Wungu of Semarang, and Subang of West Java at the total areas of 1,125 hectares. Some 850 hectares of the total areas are the land of the engineering division in Subang.
Monday, February 19, 2007
BSM Issue IDR200 Billion Bonds
PT Bank Syariah Mandiri (BSM), the unit of PT Bank Mandiri Tbk, has planned to issue subordinated bonds of IDR200 billion.
The IPO of the bank will be in 2009. The President Director of BSM Yuslam Fauzi said Bank Indonesia has approved the bank's plan to issue the bonds.
"We hope that the offering process will be this month," he said last two week.
He said that with the issuance of the bonds, the bank's capital will increase by IDR100 billion so that its capital adequacy ratio will increase from 11% at present to 15% so that it will be easier for the bank to expand its business.
The regulation of Bank Indonesia has said that 50% of the cash from subordinated bonds issuance can be accounted into the capital structure of a bank.
In the bonds issuance, BSM has assigned its sister company, PT Mandiri Sekuritas, as the underwriter. Fitch Rating has granted A- rating for the bonds.
"We predict that we will be able to expand our credit by 30%-40% this year. We will meet the need on capital from the bonds issuance. To increase the capacity of our credit, we will also use the trade financing scheme from other parties."
The bank has got the latest trade financing from Islamic Development Bank as much as US$6 million. Yuslam also said that the IPO of the bank will be in 2009.
But if it is necessary, the bank will be ready to conduct the IPO in 2008. "It has been long time for us to prepare the IPO."
Fitch Ratings has granted A rating for BSM and A- for the subordinated bonds. The rating agency said that A rating reflects the dominant position of BSM in Indonesian sharia banking market as well as indicates the quality of the credits compared with those of other issuers.
The IPO of the bank will be in 2009. The President Director of BSM Yuslam Fauzi said Bank Indonesia has approved the bank's plan to issue the bonds.
"We hope that the offering process will be this month," he said last two week.
He said that with the issuance of the bonds, the bank's capital will increase by IDR100 billion so that its capital adequacy ratio will increase from 11% at present to 15% so that it will be easier for the bank to expand its business.
The regulation of Bank Indonesia has said that 50% of the cash from subordinated bonds issuance can be accounted into the capital structure of a bank.
In the bonds issuance, BSM has assigned its sister company, PT Mandiri Sekuritas, as the underwriter. Fitch Rating has granted A- rating for the bonds.
"We predict that we will be able to expand our credit by 30%-40% this year. We will meet the need on capital from the bonds issuance. To increase the capacity of our credit, we will also use the trade financing scheme from other parties."
The bank has got the latest trade financing from Islamic Development Bank as much as US$6 million. Yuslam also said that the IPO of the bank will be in 2009.
But if it is necessary, the bank will be ready to conduct the IPO in 2008. "It has been long time for us to prepare the IPO."
Fitch Ratings has granted A rating for BSM and A- for the subordinated bonds. The rating agency said that A rating reflects the dominant position of BSM in Indonesian sharia banking market as well as indicates the quality of the credits compared with those of other issuers.
Hashim Take Over Tuban Petro
Hashim S. Djojohadikusumo has agreed makes a bid to pay its IDR3.2 trillion in debts to get 45% stakes of PT Tuban Petrochemical Industries (Tuban Petro) from 70% shares of the government through the State Asset Management Corporation.
In the transaction takes place, the government will still own 25% shares at Tuban Petro. The rest shares will belong to Sila Kencana Lestari Group (30%) and Hashim (45%).
An executive involving in the transaction said the finalization of the documents is going on.
"If the Finance Minister agrees the transaction, the government's shares will decline from 70% to 25, and the rest will be taken over by Hashim," he said last month.
Hashim is the son of economist Prof. Soemitro Djojohadikusumo. He was known as one of Indonesia's conglomerate with various businesses. Through PT Prima Comexindo Trading, Hashim has expanded his business to Russia, Kazakhstan, Azerbaijan, and Africa since 90s.
Last year, through Nations Energy Co, Calgary based oil and gas company, Hashim sold his oil blocks as well as the mining facilities in Kazakhstan to CITIC Group of China at the price of US$1.91 billion.
The Corporate Secretary of PPA Renny O. Rorong said that the company has been reviewing the plan.
PPA owns some assets of Tuban Petro in multi-years bond of IDR3.266 trillion and mandatory convertible bond (MCB) of IDR4.167 trillion following the debt restructuring of Tirtamas Majutama.
The MCB represents the ownership of 21%-25% at PT Trans Pacific Petrochemical Indotama (TPPI). Tuban Petro owns 59.5% shares at TPPI and 80% shares at PT Polytama Propindo.
Apart from PPA, the other shareholders are Itochu Corporation (4.25%), Tuban Petrochemicals Pte Ltd (the unit of Siam Cement PCL 17%), Sojitz Corporation (4.25%) and Pertamina (15%).
TPPI produce aromatics products like paraxylene, benzene, toluene, orthoxylene at the volume of 1,065,000 tons per annum.
Another source said that Pertamina may buy the rest 25% shares of Tuban Petro from PPA.
"Based on the restructuring agreement of Tirtamas, Pertamina has the rest shares of 15% at TPPI, and it has the option to have the ownership to 25% at Tuban Petro through the scheme of rights to match.
In the transaction takes place, the government will still own 25% shares at Tuban Petro. The rest shares will belong to Sila Kencana Lestari Group (30%) and Hashim (45%).
An executive involving in the transaction said the finalization of the documents is going on.
"If the Finance Minister agrees the transaction, the government's shares will decline from 70% to 25, and the rest will be taken over by Hashim," he said last month.
Hashim is the son of economist Prof. Soemitro Djojohadikusumo. He was known as one of Indonesia's conglomerate with various businesses. Through PT Prima Comexindo Trading, Hashim has expanded his business to Russia, Kazakhstan, Azerbaijan, and Africa since 90s.
Last year, through Nations Energy Co, Calgary based oil and gas company, Hashim sold his oil blocks as well as the mining facilities in Kazakhstan to CITIC Group of China at the price of US$1.91 billion.
The Corporate Secretary of PPA Renny O. Rorong said that the company has been reviewing the plan.
PPA owns some assets of Tuban Petro in multi-years bond of IDR3.266 trillion and mandatory convertible bond (MCB) of IDR4.167 trillion following the debt restructuring of Tirtamas Majutama.
The MCB represents the ownership of 21%-25% at PT Trans Pacific Petrochemical Indotama (TPPI). Tuban Petro owns 59.5% shares at TPPI and 80% shares at PT Polytama Propindo.
Apart from PPA, the other shareholders are Itochu Corporation (4.25%), Tuban Petrochemicals Pte Ltd (the unit of Siam Cement PCL 17%), Sojitz Corporation (4.25%) and Pertamina (15%).
TPPI produce aromatics products like paraxylene, benzene, toluene, orthoxylene at the volume of 1,065,000 tons per annum.
Another source said that Pertamina may buy the rest 25% shares of Tuban Petro from PPA.
"Based on the restructuring agreement of Tirtamas, Pertamina has the rest shares of 15% at TPPI, and it has the option to have the ownership to 25% at Tuban Petro through the scheme of rights to match.
Kalla & Texmaco
Vice President Jusuf Kalla said that the restructuring of IDR30 trillion debt of Texmaco has to wait until the conclusion of assets sale of the company. The tender on the assets sale will be this week.
Ahaa...., is that the signal our government is likely to takeover the assets of Texmaco Group and place the asset under the strategic industry group of SOE while an investor is interested in acquiring the exchangeable bonds of the group ?????
But Kalla said that the government has not had any further plan on Texmaco. "We see the result of the tender, and then we will see the next step," said the vice president when visiting the engineering facility of Texmaco Group in Subang on last Saturday.
Reportedly three companies have been interested in acquiring the assets of Texmaco by attending a tender on February. The three companies, according to the source of Bisnis Indonesia, are PT Bhakti Aset Management, PT Amir Asia International Ltd, and PT Cipta Raharja Investment BV. "The three companies are eligible to take part in the tender."
Kalla said he visited the facility to know the real asset investors will take over. "I just want to see the assets before being taken over."
He was accompanies by Finance Minister Sri Mulyani Indrawati, Industry Minister Fahmi Idris, Trade Minister Mari E. Pangestu, Agriculture Minister Anton Apriyantono, and the Chairman of Bappenas Paskah Suzetta. Marimutu Manimanen of Texmaco Group also visited the facilities.
The vice president said that the assets are now controlled by the State Assets Management Corporation (PPA) and it should be handled well. He said that an entrepreneurship is needed to handle the facility as so far it runs at the 20% of the capacity.
"We have to find out the best solution. We have to find investor so that the facility can back to normal."
Kalla said it is not easy to restructure the bad debt of IDR30 trillion of Texmaco. It will be the burden for the people if the government takes over the asset as the government could develop 10,000 units of schools with such amount of money.
"The IDR30 trillion debt can be taken over by the government, but it will be the burden for all people. We can develop 10,000 schools with IDR30 trillion. So let's find the solution," he said.
In his presentation before the vice president and the ministers, Marimanen, the director of Texmaco Group, has regretted that the government does not restructure the debt as soon as possible.
"The facility can become the base of engineering industry, but the government does not restructure the debt as soon as possible."
Texmaco Group owns three facilities in Karawang, Kali Wungu of Semarang, and Subang of West Java at the total areas of 1,125 hectares. Some 850 hectares of the total areas are the land of the engineering division in Subang.
So....The winner is........
Ahaa...., is that the signal our government is likely to takeover the assets of Texmaco Group and place the asset under the strategic industry group of SOE while an investor is interested in acquiring the exchangeable bonds of the group ?????
But Kalla said that the government has not had any further plan on Texmaco. "We see the result of the tender, and then we will see the next step," said the vice president when visiting the engineering facility of Texmaco Group in Subang on last Saturday.
Reportedly three companies have been interested in acquiring the assets of Texmaco by attending a tender on February. The three companies, according to the source of Bisnis Indonesia, are PT Bhakti Aset Management, PT Amir Asia International Ltd, and PT Cipta Raharja Investment BV. "The three companies are eligible to take part in the tender."
Kalla said he visited the facility to know the real asset investors will take over. "I just want to see the assets before being taken over."
He was accompanies by Finance Minister Sri Mulyani Indrawati, Industry Minister Fahmi Idris, Trade Minister Mari E. Pangestu, Agriculture Minister Anton Apriyantono, and the Chairman of Bappenas Paskah Suzetta. Marimutu Manimanen of Texmaco Group also visited the facilities.
The vice president said that the assets are now controlled by the State Assets Management Corporation (PPA) and it should be handled well. He said that an entrepreneurship is needed to handle the facility as so far it runs at the 20% of the capacity.
"We have to find out the best solution. We have to find investor so that the facility can back to normal."
Kalla said it is not easy to restructure the bad debt of IDR30 trillion of Texmaco. It will be the burden for the people if the government takes over the asset as the government could develop 10,000 units of schools with such amount of money.
"The IDR30 trillion debt can be taken over by the government, but it will be the burden for all people. We can develop 10,000 schools with IDR30 trillion. So let's find the solution," he said.
In his presentation before the vice president and the ministers, Marimanen, the director of Texmaco Group, has regretted that the government does not restructure the debt as soon as possible.
"The facility can become the base of engineering industry, but the government does not restructure the debt as soon as possible."
Texmaco Group owns three facilities in Karawang, Kali Wungu of Semarang, and Subang of West Java at the total areas of 1,125 hectares. Some 850 hectares of the total areas are the land of the engineering division in Subang.
So....The winner is........
NISP Issue IDR300-400 Billion Bonds
PT Bank NISP Tbk is likely to issue IDR 300-400 billion bonds and some new shares this year in a bid to strengthen its capital.
My source said that the bank may issue IDR300-400 billion and now still invite local and international security companies to file the proposal to become the underwriters.
The capital adequacy ratio (CAR) of the bank is still sufficient at 17.13% even though it has been lower than 19.95% of last year. The bank, has planned to search for new capital to maintain the capital adequacy ratio of 17% at the end of this year.
In 2006 the bank registered the net profit of IDR237 billion, an increase of 16% from that in 2005. the bank need the investment of IDR250 billion to open up 90 new branch offices and to provide 150 units of new ATMs. The bank's loan should grow by 30% to IDR5trillion - IDR6 trillion.
Some banks have planned to issue some bonds. PT Bank Tabungan Pensiunan Nasional has planned to issue IDR540 billion bonds next April, Bank Niaga as much as IDR1.5 trillion on the first half of the year, and PT Bank Tabungan Negara Tbk (BTN) has planned to issue IDR1, trillion. PT Bank Mega Tbk has planned to issue IDR1 trillion bonds in June 2007, Bank Nagari IDR500 billion, PT Bank Victoria Tbk IDR200 billion.
My source said that the bank may issue IDR300-400 billion and now still invite local and international security companies to file the proposal to become the underwriters.
The capital adequacy ratio (CAR) of the bank is still sufficient at 17.13% even though it has been lower than 19.95% of last year. The bank, has planned to search for new capital to maintain the capital adequacy ratio of 17% at the end of this year.
In 2006 the bank registered the net profit of IDR237 billion, an increase of 16% from that in 2005. the bank need the investment of IDR250 billion to open up 90 new branch offices and to provide 150 units of new ATMs. The bank's loan should grow by 30% to IDR5trillion - IDR6 trillion.
Some banks have planned to issue some bonds. PT Bank Tabungan Pensiunan Nasional has planned to issue IDR540 billion bonds next April, Bank Niaga as much as IDR1.5 trillion on the first half of the year, and PT Bank Tabungan Negara Tbk (BTN) has planned to issue IDR1, trillion. PT Bank Mega Tbk has planned to issue IDR1 trillion bonds in June 2007, Bank Nagari IDR500 billion, PT Bank Victoria Tbk IDR200 billion.
Sunday, February 18, 2007
Asia receives the highest FDI and China is the most preferred FDI location
Standard & Poor's Ratings Services last week issued a report that finds that the flow of foreign direct investment (FDI) into emerging market economies (EMEs) should continue over the next few years. Among the EMEs, Asia received the highest FDI in nominal terms for the seventh year in the row and China continued to be the most preferred FDI location.
The report, entitled "Recent And Expected FDI Trends In Emerging Market Economies," says that these FDI inflows reflect robust global growth, deepening globalization trends, rising competition and subsequent pressures for mergers and acquisitions, and ongoing improvements in the business environments of many EMEs.
According to Standard & Poor's credit analyst Helena Hessel, the rates of growth are unlikely to be as impressive as in the past three years (2004-2006), which followed a severe three-year drop (2001-2003) and reflected a particularly conducive global economic environment. "Nevertheless, we project that, in the absence of a significant geopolitical backlash, total global FDI inflows will reach US$1.5 trillion in 2008, surpassing the peak of US$1.4 billion achieved in 2000 and rising to US$1.7 trillion by the end of this decade," said Mrs. Hessel.
The report notes that, despite a continuing slump in FDI to developed countries, the impressive growth of inflows to EMEs resulted in a recovery in global FDI inflows in 2004. However, this trend has since reversed and the growth of FDI inflows to developed economies strongly outperformed that to EMEs in 2005-2006.
Being part of the EMEs, Asia received US$178 billion of FDI, representing 38% of total FDI inflows to EMEs in 2006. China, one of the fastest growing countries in Asia, attracted about US$70 billion of FDI in 2006 for the second year in a row. Until the end of the decade, China is likely to continue to attract the most FID inflows among EMEs in nominal terms.
Elsewhere in Asia, the rate of growth of FDI inflow to Hong Kong slowed to just 4.3% in 2006 after rising by 150% to US$34 billion in 2004 and 16.8% to US$39.7 billion in 2005. Singapore reported an increasing level of FDI in 2006 after a decline in 2005.
On the other hand, FDI to India increased by 43.9% to US$9.5 billion, reflecting its strong economic growth and increasingly liberal foreign investment policies. Thailand received US$7.9 billion in FDI in 2006, up 114.7% year-on-year, but this upward trend has changed dramatically after the military coup and the fast-deteriorating investment climate. Looking forward, China, Hong Kong, Singapore and India will remain the biggest beneficiaries of FDI inflows during 2007-2010.
Mrs. Hessel explained that the tendency of faster-growing inflows to developed countries compared to EMEs is expected to continue over the next few years. "The commodity boom that underpinned considerable FDI to resource-rich EMEs has reached a plateau," noted Mrs. Hessel.
"In addition, since the concentration of FDI into EMEs is relatively high, their absorptive capacity will diminish, reflecting the completion of large privatization programs (e.g., in Egypt, Morocco, and some Eastern European countries), maturation of their economies, declining competitiveness, and various institutional and business constraints (in Turkey and India)," she concluded.
The report, entitled "Recent And Expected FDI Trends In Emerging Market Economies," says that these FDI inflows reflect robust global growth, deepening globalization trends, rising competition and subsequent pressures for mergers and acquisitions, and ongoing improvements in the business environments of many EMEs.
According to Standard & Poor's credit analyst Helena Hessel, the rates of growth are unlikely to be as impressive as in the past three years (2004-2006), which followed a severe three-year drop (2001-2003) and reflected a particularly conducive global economic environment. "Nevertheless, we project that, in the absence of a significant geopolitical backlash, total global FDI inflows will reach US$1.5 trillion in 2008, surpassing the peak of US$1.4 billion achieved in 2000 and rising to US$1.7 trillion by the end of this decade," said Mrs. Hessel.
The report notes that, despite a continuing slump in FDI to developed countries, the impressive growth of inflows to EMEs resulted in a recovery in global FDI inflows in 2004. However, this trend has since reversed and the growth of FDI inflows to developed economies strongly outperformed that to EMEs in 2005-2006.
Being part of the EMEs, Asia received US$178 billion of FDI, representing 38% of total FDI inflows to EMEs in 2006. China, one of the fastest growing countries in Asia, attracted about US$70 billion of FDI in 2006 for the second year in a row. Until the end of the decade, China is likely to continue to attract the most FID inflows among EMEs in nominal terms.
Elsewhere in Asia, the rate of growth of FDI inflow to Hong Kong slowed to just 4.3% in 2006 after rising by 150% to US$34 billion in 2004 and 16.8% to US$39.7 billion in 2005. Singapore reported an increasing level of FDI in 2006 after a decline in 2005.
On the other hand, FDI to India increased by 43.9% to US$9.5 billion, reflecting its strong economic growth and increasingly liberal foreign investment policies. Thailand received US$7.9 billion in FDI in 2006, up 114.7% year-on-year, but this upward trend has changed dramatically after the military coup and the fast-deteriorating investment climate. Looking forward, China, Hong Kong, Singapore and India will remain the biggest beneficiaries of FDI inflows during 2007-2010.
Mrs. Hessel explained that the tendency of faster-growing inflows to developed countries compared to EMEs is expected to continue over the next few years. "The commodity boom that underpinned considerable FDI to resource-rich EMEs has reached a plateau," noted Mrs. Hessel.
"In addition, since the concentration of FDI into EMEs is relatively high, their absorptive capacity will diminish, reflecting the completion of large privatization programs (e.g., in Egypt, Morocco, and some Eastern European countries), maturation of their economies, declining competitiveness, and various institutional and business constraints (in Turkey and India)," she concluded.
Who Control Polyprima ? Pertamina, Petronas Ashmore or.......
The shareholders of Polyprima, with approval from Bank Mandiri, want to sell the company. So far, the State Oil Company (PT Pertamina) and Petronas Malaysia are touted to be interested in acquiring the entire stake in Polyprima.
Polyprima owes IDR1.3trillion in liability and US$60 million in loan facility to Bank Mandiri. Meanwhile, outside of Pertamina and Petronas, investment manager Ashmore is also interested in buying Polyprima, a purified terephathalic acid (raw material to produce plastic and polyester) producer.
Some executives who knew about the plan confided that Polyprima had appointed PT Mandiri Sekuritas to handle their share disposal. "Polyprima may dispose its entire stake," said one executive to Bisnis yesterday.
When asked for confirmation, President Director of Polyprima Airlangga Hartarto declined to explain in details. "You should ask this to Mandiri Sekuritas, which handles the sale of Polyprima," when I call him last month
Polyprima owes IDR1.3trillion in liability and US$60 million in loan facility to Bank Mandiri. Meanwhile, outside of Pertamina and Petronas, investment manager Ashmore is also interested in buying Polyprima, a purified terephathalic acid (raw material to produce plastic and polyester) producer.
Some executives who knew about the plan confided that Polyprima had appointed PT Mandiri Sekuritas to handle their share disposal. "Polyprima may dispose its entire stake," said one executive to Bisnis yesterday.
When asked for confirmation, President Director of Polyprima Airlangga Hartarto declined to explain in details. "You should ask this to Mandiri Sekuritas, which handles the sale of Polyprima," when I call him last month
KDB & Bank Mandiri Finance Lubricant Project Worth US$140 Million
PT Bank Mandiri Tbk and Korea Development Bank (KDB) has agreed to participate in syndicated loans of US$140 million to finance the project of lube base oil group III worth US$200 million.
Bank Mandiri's Director Abdul Rahman said the bank has committed to provide US$90 million.
"We will discuss the final figure later as the presence of new syndication member is possible. It seems the composition is 50:50 with Korea Development Bank, but we may change it," he said two weeks ago when I meet him di Dumai.
He said the interest rate will refer to London inter bank offered rate (Libor). "We will refer to the interest rate of the market. Bank Mandiri is committed to provide up to US$90 million for this project."
The President Director of Pertamina Ari H. Soemarno said Pertamina, in cooperation with SK Corporation Ltd of South Korea, has planned to invest US$200 million on the project of raw material for synthetic lubricant.
The company has established new joint venture, Patra SK. SK controls 65% shares of the company, and Pertamina, through its unit Patra Niaga owns the rest 35%.
The CEO of SK Internasional (H) Pte Ltd Jeong Joon Yu added financial company will provide 60% of the capital while Pertamina and SK will provide the rest 40%.
Ari said SK will buy raw material from Pertamina, and it has been factored in as Pertamina's capital.
At the first stage the company will produce lube base oil group III at the volume of 7,250 barrel per day, and latter will be 10,000 bpd. On May 2008 the company will start its operation.
The company will sell the product in the domestic as well as export market like the East Asia and the Europe. But he added that the product will mostly for export as the price will be expensive and the target market will be the high class segment.
Pertamina, he said, will have the right to sell the product in the domestic market, while SK will be responsible to sell the product overseas.
"The project will be profitable as the revenue could reach US$300 million per annum. The margin will be around 10% so that many banks have been interested in financing the project."
Ari said Pertamina will run the project as the raw material will be from the oil block of Minas.
Bank Mandiri's Director Abdul Rahman said the bank has committed to provide US$90 million.
"We will discuss the final figure later as the presence of new syndication member is possible. It seems the composition is 50:50 with Korea Development Bank, but we may change it," he said two weeks ago when I meet him di Dumai.
He said the interest rate will refer to London inter bank offered rate (Libor). "We will refer to the interest rate of the market. Bank Mandiri is committed to provide up to US$90 million for this project."
The President Director of Pertamina Ari H. Soemarno said Pertamina, in cooperation with SK Corporation Ltd of South Korea, has planned to invest US$200 million on the project of raw material for synthetic lubricant.
The company has established new joint venture, Patra SK. SK controls 65% shares of the company, and Pertamina, through its unit Patra Niaga owns the rest 35%.
The CEO of SK Internasional (H) Pte Ltd Jeong Joon Yu added financial company will provide 60% of the capital while Pertamina and SK will provide the rest 40%.
Ari said SK will buy raw material from Pertamina, and it has been factored in as Pertamina's capital.
At the first stage the company will produce lube base oil group III at the volume of 7,250 barrel per day, and latter will be 10,000 bpd. On May 2008 the company will start its operation.
The company will sell the product in the domestic as well as export market like the East Asia and the Europe. But he added that the product will mostly for export as the price will be expensive and the target market will be the high class segment.
Pertamina, he said, will have the right to sell the product in the domestic market, while SK will be responsible to sell the product overseas.
"The project will be profitable as the revenue could reach US$300 million per annum. The margin will be around 10% so that many banks have been interested in financing the project."
Ari said Pertamina will run the project as the raw material will be from the oil block of Minas.
BNR on Sale
The State Asset Management Corporation (PPA) has planned to conduct a tender to find financial consultant and legal consultant to sell 70.5% shares of credit asset of PT Bali Nirwana Resort (BNR) as much as IDR1.54 trillion.
In the meantime, BNR has been searching the loan of US$9 million to revitalize the company's resort facility. The President Director of PPA Mohammad Syahrial said that the sales of BNR will take place in the first half of the year.
"At first, we will conduct a tender to get financial consultant, legal consultant and other supporting profession to help PPA to sell the assets," he said last four week ago.
He said PPA has let the management of BNR to search for the loan of US$9 million to revitalize the company's facilities. PPA holds 70.5% shares of BNR after it get the shares from IBRA. The other shares belong to Bakrie Family.
"The management is free. We let them to search for loan as long as our loan is paid off." He said that the sale of the asset has been included in PPA's working plan of 2007.
Four years ago, IBRA has offered 70.5% shares of BNR and the credit assets of IDR1.54 trillion through the program of Assets Sales Batch VI.
Bit IBRA has cancelled the sale as two investors, Japan Asia Investment Corp Indonesia of Japan and Indo Partners of Singapore have asked for difficult requirements to meet.
The President Director of BNR Henu Kusdaryono said the company will synchronize the company's working plan with the plan of PPA to sell the assets.
"We need the loan of US$9 million, but we are still waiting for the approval from PPA. We will do that right away after PPA approves our plan," he said.
He said that the company posted some positive earnings before interest, tax, depreciation and amortization.
He added the company could get fresh capital from banking loan or from bonds issuance.
According to him, the company needs the money to improve the facility of the company's resort to attract visitors.
"We need to improve some facilities including to replace the electric key system to cut energy cost and to improve our SPA to provide value added for visitors."
The asset of BNR includes Le Meridien Nirwana Golf & Spa Resort, managed by Meridien S.A.
The share of PPA has increased from 56% to 70.5% following the US$82 million debt to equity conversion.
At the first step, the debt has been cut from US$40 million to US$20 million, and the rest debt has been converted into shares. On the second step the US$38 million debt has been cut by US$9 million so that the rest debt was US$29 million.
Therefore the outstanding debt of BNR was US$29 million at the interest rate of Singapore inter bank offered rate (SIBOR) plus 1%.
In the meantime, BNR has been searching the loan of US$9 million to revitalize the company's resort facility. The President Director of PPA Mohammad Syahrial said that the sales of BNR will take place in the first half of the year.
"At first, we will conduct a tender to get financial consultant, legal consultant and other supporting profession to help PPA to sell the assets," he said last four week ago.
He said PPA has let the management of BNR to search for the loan of US$9 million to revitalize the company's facilities. PPA holds 70.5% shares of BNR after it get the shares from IBRA. The other shares belong to Bakrie Family.
"The management is free. We let them to search for loan as long as our loan is paid off." He said that the sale of the asset has been included in PPA's working plan of 2007.
Four years ago, IBRA has offered 70.5% shares of BNR and the credit assets of IDR1.54 trillion through the program of Assets Sales Batch VI.
Bit IBRA has cancelled the sale as two investors, Japan Asia Investment Corp Indonesia of Japan and Indo Partners of Singapore have asked for difficult requirements to meet.
The President Director of BNR Henu Kusdaryono said the company will synchronize the company's working plan with the plan of PPA to sell the assets.
"We need the loan of US$9 million, but we are still waiting for the approval from PPA. We will do that right away after PPA approves our plan," he said.
He said that the company posted some positive earnings before interest, tax, depreciation and amortization.
He added the company could get fresh capital from banking loan or from bonds issuance.
According to him, the company needs the money to improve the facility of the company's resort to attract visitors.
"We need to improve some facilities including to replace the electric key system to cut energy cost and to improve our SPA to provide value added for visitors."
The asset of BNR includes Le Meridien Nirwana Golf & Spa Resort, managed by Meridien S.A.
The share of PPA has increased from 56% to 70.5% following the US$82 million debt to equity conversion.
At the first step, the debt has been cut from US$40 million to US$20 million, and the rest debt has been converted into shares. On the second step the US$38 million debt has been cut by US$9 million so that the rest debt was US$29 million.
Therefore the outstanding debt of BNR was US$29 million at the interest rate of Singapore inter bank offered rate (SIBOR) plus 1%.
PPA Reject Sinivasan ????
The State Assets Management Corporation (PPA) has rejected the proposal of three investors from Hong Kong and Singapore to acquire the assets of Texmaco Group as they are related to the former owner of the group.
The President Director of PPA Mohammad Syahrial said that following the rejection over the three investors, there is now only one local companies conducting due diligence over the assets of Texmaco.
"Previously there were four investors wanting to buy Texmaco. But after the further review, we know that the three investors are related to the previous owner so that PPA has rejected their involvement in the bidding," he said four week ago when I met him in his office.
But he declined to mention the name of investors related to the previous owner of Texmaco. "It is not necessary to disclose the name, but the use special purpose vehicle."
He said that based on the initial schedule, PPA and the government will take the decision on February 20 on who will takeover the assets.
Since December 22 2006, PPA has started the program to sell credit assets of Texmaco. PPA will use the cash to cover the state budget deficit of 2007. The value of the assets is based on the assessment of PT Bahana Securities and PT Satyatama Graha Tara.
Based on such assessment, the Finance Minister will take the decision on the selling price of the asset.
PPA has assigned PT Indo Premier Securities to sell the credit asset of Texmaco Group. PPA also has assigned the law office of Marsinih, Martoadmodjo Iskandar and Kusdiharjo (MMIK) as the legal consultant.
The total debt of technical unit of Texmaco is US$1.48 billion, while the debt of the textile unit is US$833.93 million, and the debt on letter of credit is US$87.36 million so that the total debt of Texmaco to PPA is US$2.98 billion.
As PPA has been selling the assets of Texmaco, it means it has closed all negotiation on the debt restructuring.
Some investors have been interested to acquire the assets. A Singapore base investor have offered the price of IDR90 billion or 0.3% to the asset value of IDR29.37 trillion. Farallon Capital Asia, through PT Kinerja Prima Perkasa, has offered to buy the assets at the price of IDR290 billion or 1% to the total value.
Prabowo Subianto, a former army commander, said once that he ready to establish a consortium to takeover the assets at the price of 5% to the book value.
The Consortium of Utara Capital, chaired by Mirzan Mahathir (the son of former Malaysian Prime Minister Mahathir Mohammad) and China Blue Star also have expressed once that they are interested in acquiring the assets of Texmaco.
The President Director of PPA Mohammad Syahrial said that following the rejection over the three investors, there is now only one local companies conducting due diligence over the assets of Texmaco.
"Previously there were four investors wanting to buy Texmaco. But after the further review, we know that the three investors are related to the previous owner so that PPA has rejected their involvement in the bidding," he said four week ago when I met him in his office.
But he declined to mention the name of investors related to the previous owner of Texmaco. "It is not necessary to disclose the name, but the use special purpose vehicle."
He said that based on the initial schedule, PPA and the government will take the decision on February 20 on who will takeover the assets.
Since December 22 2006, PPA has started the program to sell credit assets of Texmaco. PPA will use the cash to cover the state budget deficit of 2007. The value of the assets is based on the assessment of PT Bahana Securities and PT Satyatama Graha Tara.
Based on such assessment, the Finance Minister will take the decision on the selling price of the asset.
PPA has assigned PT Indo Premier Securities to sell the credit asset of Texmaco Group. PPA also has assigned the law office of Marsinih, Martoadmodjo Iskandar and Kusdiharjo (MMIK) as the legal consultant.
The total debt of technical unit of Texmaco is US$1.48 billion, while the debt of the textile unit is US$833.93 million, and the debt on letter of credit is US$87.36 million so that the total debt of Texmaco to PPA is US$2.98 billion.
As PPA has been selling the assets of Texmaco, it means it has closed all negotiation on the debt restructuring.
Some investors have been interested to acquire the assets. A Singapore base investor have offered the price of IDR90 billion or 0.3% to the asset value of IDR29.37 trillion. Farallon Capital Asia, through PT Kinerja Prima Perkasa, has offered to buy the assets at the price of IDR290 billion or 1% to the total value.
Prabowo Subianto, a former army commander, said once that he ready to establish a consortium to takeover the assets at the price of 5% to the book value.
The Consortium of Utara Capital, chaired by Mirzan Mahathir (the son of former Malaysian Prime Minister Mahathir Mohammad) and China Blue Star also have expressed once that they are interested in acquiring the assets of Texmaco.
Hashim will control Tuban Petro ????
Tirtamas Group owned by Hashim Djojohadikusumo makes a bid to pay its IDR3.2 trillion in debts to the Assets Management Company (PPA) in order to regain control of majority stakes in TPPI.
Due to restructuring of Tirtamas Majutama Group made by the Indonesian Banking Restructuring Agency (BPPN), PT PPA currently controls shares and credit assets of PT Tuban Petrochemical Industries (Tuban Petro) in forms of Multi Years Bond (IDR3.266 trillion) and Mandatory Convertible Bond (MCB) (IDR4.167 trillion).
The MCB reflects the control of a 21%-25% stake in PT Trans Pacific Petrochemical Indotama (TPPI).
Tuban Petro controls a 59.5% stake in TPPI and 80% stake in PT Polytama Propindo. The shareholders other than PT PPA are Itochu Corporation, Tuban Petrochemicals Pte Ltd (subsidiary of Siam Cement PCL) and Sojitz Corporation.
Corporate Secretary of PT PPA Renny O. Rorong confirmed to me that Tirtamas had expressed its wish to pay its debts to PPA. "But now PPA is studying further for the plan
When asked for confirmation, Commissioner of TPPI Amir Sambodo said he had not known the Tirtamas' wish in details. "As far as I know, there are indications that they (Tirtamas) will try to regain control of TPPI and PT PPA will ask them to pay their entire debts."
He exposed that TPPI had signed an agreement with Singaporean United Overseas Bank (UOB) in which the bank was ready to provide US$90 million in working capital to TPPI.
The Letter of Credit (L/C) is going to be used to import condensate and to meet TPPI's needs for six months.
Due to restructuring of Tirtamas Majutama Group made by the Indonesian Banking Restructuring Agency (BPPN), PT PPA currently controls shares and credit assets of PT Tuban Petrochemical Industries (Tuban Petro) in forms of Multi Years Bond (IDR3.266 trillion) and Mandatory Convertible Bond (MCB) (IDR4.167 trillion).
The MCB reflects the control of a 21%-25% stake in PT Trans Pacific Petrochemical Indotama (TPPI).
Tuban Petro controls a 59.5% stake in TPPI and 80% stake in PT Polytama Propindo. The shareholders other than PT PPA are Itochu Corporation, Tuban Petrochemicals Pte Ltd (subsidiary of Siam Cement PCL) and Sojitz Corporation.
Corporate Secretary of PT PPA Renny O. Rorong confirmed to me that Tirtamas had expressed its wish to pay its debts to PPA. "But now PPA is studying further for the plan
When asked for confirmation, Commissioner of TPPI Amir Sambodo said he had not known the Tirtamas' wish in details. "As far as I know, there are indications that they (Tirtamas) will try to regain control of TPPI and PT PPA will ask them to pay their entire debts."
He exposed that TPPI had signed an agreement with Singaporean United Overseas Bank (UOB) in which the bank was ready to provide US$90 million in working capital to TPPI.
The Letter of Credit (L/C) is going to be used to import condensate and to meet TPPI's needs for six months.
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