Thursday, April 22, 2010

Berau coal picks 4 underwriter

PT Berau Coal Energy, which is transformation of PT Armadian Tritunggal, the holding of PT Berau Coal as the fifth largest coal mining in Indonesia, appointed four underwriters for the 15-20 percent initial public offering (IPO).
The underwriters are Credit Suisse Securities, JP Morgan Securities, Danatama Makmur, and Recapital Securities. Berau Energy will later rake up US$300-US$400 million cash from IPO
On the other side, PT Delta Dunia Makmur plans to have rights issue worth IDR10 trillion, which will be taken by Recapital as standby buyer. At the same time, Recapital issues bonds which will be exchanged on the maturity by April 2011 into Berau Coal stocks.
The convertible bonds here will be taken by Delta Dunia. Now, 40 percent of Delta Dunia stocks are owned by the consortium led by Northstar Equity Partners.
The end of the scenario is that Delta Dunia becomes the major shareholder directly at Berau Coal and Recapital major shareholder directly at Delta Dunia.
But the calculation basis for the ruislag remains unclear. Let alone, the rights issue of Delta Dunia with a par value of IDR1,400 will be done only four months after corporate private placement at the same price. So, it sparked investors disappointment so Delta Dunia stocks dropped by 38 percent this year despite the soaring coal prices

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