The proposed transaction merger between PT Chandra Asri Tbk and PT Tri Polyta Indonesia Tbk throughout share swap.
Standard & Poor's Ratings Services said that the announcement of a merger between Chandra Asri (B+/Stable/--) and Tri Polyta Indonesia (not rated) does not have an immediate rating impact on Chandra Asri.
S&P says which will not result in any financial burden or require any additional funding on both Chandra Asri and Tri Polyta. If the proposal is successful, the financial accounts of both companies will be consolidated, and our rating will then be based on the consolidated business entity.
In S&P view, the merger with Tri Polyta would improve Chandra Asri's financial metrics; Tri Polyta is in a net cash position and its debt to EBITDA was less than 1x as at June 30, 2010. Nevertheless, S&P believe Chandra Asri and Tri Polyta will to continue to face weak margins in the next six to 12 months because of added supply in Asia and the Middle East for basic chemicals and plastics.
Tri Polyta is Chandra Asri's largest customer for propylene, feedstock used for production of polypropylene. In 2009, it accounted for 18% of Chandra Asri's total sales revenues.
In S&P view, the merger with Tri Polyta would improve Chandra Asri's financial metrics; Tri Polyta is in a net cash position and its debt to EBITDA was less than 1x as at June 30, 2010. Nevertheless, S&P believe Chandra Asri and Tri Polyta will to continue to face weak margins in the next six to 12 months because of added supply in Asia and the Middle East for basic chemicals and plastics.
Tri Polyta is Chandra Asri's largest customer for propylene, feedstock used for production of polypropylene. In 2009, it accounted for 18% of Chandra Asri's total sales revenues.
No comments:
Post a Comment