AirAsia acquire 49% share of Batavia Air for US$80 million

Malaysia’s AirAsia, the leading low-cost airline in Southeast Asia, announced it is acquire mid-service airline Batavia Air. The deal at pirce US$80 million for 49% share Batavia Air. The goal of the purchase is to expand into Southeast Asia’s largest econom. AirAsia take over 49% share Batavia Air own by Yudiawan Tansari.

After acquisition, AirAsia Berhard Malaysia own 49% share and Fersindo Nusaperkasa own 51% share of Batavia Air.

Bakrie Telecom raise US$50 million loan

PT Bakrie Telecom Tbk secured a loan amounting US$50 million from a syndicate of lenders for the repayment of the I/2007 bond principal of the company.

The management of the company led by Anindya Novyan Bakrie in the disclosure of information submitted to the Indonesia Stock Exchange said the loan was handled by Credit Suisse Singapore as a facilitating agent.

"The loan facility will be used for partial payment of the bond principal of BTEL I/2007 on September 4, 2012," said the company's management.

BTEL’s management said the disbursement of the facility will be implemented after completing all requirements as stipulated in the syndicated loan agreement. More recently, the rating prospect of Bakrie Group's telecommunications subsidiary has already lowered to rating watch negative (RWN) by Fitch Ratings in the last week.

Currently, the ranking of foreign and rupiah denominated long-term debt Bakrie Telecom is still set at CCC level, after Fitch Ratings lowered it from B on February 29.

Hary Tanoe take over Blitz

Media tycoon Bambang Hary Iswanto Tanoesoedibjo plans to acquire Blitz Megaplex, own by Ananda Siregar through listed media company PT Media Nusantara Citra Tbk.

Ananda Siregar and David Hilmancreate Blitz with supporting fund from Quvat Management Pte Ltd, own by Tom Lembong and Prada Perdana Investasi. Tom Lembong, eks Divison Head Asset Management Investment Indonesian Bank Restructuring Agency (IBRA/Badan Penyehatan Perbankan Nasional/BPPN)

Media Nusantara Citra plans to spend up to Rp 1 trillion ($110 million) to construct a building in the capital for its affiliate companies, including Saban Capital Group, a Los Angeles-based investment firm.

The building will have 45 floors and cover 1,064 square meters in Central Jakarta near MNC Tower, the office of MNC’s parent company Global Mediacomm and other affiliates.
 

MNC runs three national free-to-air television networks — RCTI, MNC TV and Global TV — with nearly 40 percent audience share, according to Nielsen research. It also owns a newspaper, a tabloid, a magazine, radio networks, online media, an advertising agency and a talent management agency.
 

Bumi Resources plans to pay debt to CIC

PT Bumi Resources Tbk, Indonesian biggest coal mining company, this year plans to repay its debt to China Investment Corporation (CIC) worth US$1.3 billion. The debt is divided into two parts, tranche II of US$600 million and tranche III of US$700 million.

The company owned by PT Bakrie & Brothers Tbk previously plannned for debt repayment of tranche II this year, and tranche III in October next year.

Bumi Resources secured total loans from the CIC of US$1.9 billion, of which the maturity is divided into three parts, namely the tranche I of US$600 million over four years, then US$600 million over five years, and US$700 million over 6 years .

The company said it is reviewing to sell shares of a subsidiary company of PT Bumi Resources Minerals Tbk to pay tranche II to CIC.

Kartini Mulyadi Family raise IDR2.1 trilion from share sale

Kartini Mulyadi family raise IDR2.1 trilion used the upsize option for its secondary offering PT Tempo Scan Pacific Tbk, pharmaceutical producer and distributor. 

The family throughout PT Bogamulia Nagadi offered 500 million shares at the base deal size, with an option to increase this by 175 shares, and ended up increasing this by a further 125 million shares. 

Around 80% shares of the shares were allocated to long-only institutions, with around 30 quality names in the book. HSBC was sole global coordinator and book runner. The deal priced at IDR2,650 per share, the top of the IDR2,500-IDR2,650.

4 Underwriter compete for IPO Semen Baturaja

Four securities are competing to handle an initial public offering (IPO) of PT Semen Baturaja which planned for the second semester of this year. PT Danareksa Securities, PT Mandiri Sekuritas, PT Bahana Securities, and PT Kim Eng Securities are now competing to handle the IPO of Semen Baturaja.
 

According to the plan, the IPO proceeds will be used to build cement plant, located 200 km from the current Baturaja cement plant, with a capacity of 1.5 million tons. In addition, the existing plant will also increase its capacity from 1.2 million tons to 1.5 million tons.

Semen Baturaja plans to offer between 25% and 30% of its shares to the public. The state-run company headquartered in South Sumatra is targeting US$1 billion from IPO proceeds. The selected underwriter will be begun to work this month, thus the IPO could be quickly implemented.

FKS Multi Agro picks Rabobank to arrange US$150 million loan

PT FKS Multi Agro Tbk, animal feed producer, picks Rabobank to arrange US$150 million loan.  FKS Multi Agro plans  to use the facility to refinance the facility provided by PT Bank Commonwealth and working capital.

Tempo Scan sell 11.83% shares

PT Bogamulia Nagadi, the controlling shareholder of PT Tempo Scan Pacific Tbk (TSPC), will sell shares to foreign investors through a private placement scheme.

Bogamulia Nagadi controlled by Kartini Muljadi's through PT Kumpulan Mulia which has 99.99% shares and the remaining 0.01% shares held by Kartini Muljadi’s son, Handojo Selamet Muljadi.

Of the total 4.5 billion shares of TSPC, as much as 95.06% owned by Bogamulia Nagadi. The rest is equal to 4.94% of total paid-up shares owned by public.

Management Tempo Scan announce in a prospectus, released on Monday, May 7, 2012 stating that the private placement is not aimed to seek additional funding for the activities of the company. But rather to enhance the liquidity of the TPSC stocks, broaden the investor base, as well as to increase the number of outstanding shares in the public.

"Implementation of the private placement is expected to have a positive impact not only to the company, but also to the stock exchange and public shareholders," said management.

LPS appeal privilege for strategic sale Bank Mutiara

Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) appeal Bank Indonesia to give privilege for investor who interesting to acquire PT Bank Mutiara Tbk in the new rules about bank ownership. Bank Indonesia plans to curb the amount of shares an individual investor can hold in commercial bank. 

The new regulations, which cpuld efective by fourth quarter of this year, will prevent a handfull investor for controlling or dominating banks.

Indonesian banks have been facing difficulties operating overseas, while foreign investors are allowed to own up to a 99 percent stake in local banks — a regulation made in the aftermath of 1997/1998 crisis to spur growth in the financial sector.

LPS was relaunch strategic sale of Bank Mutiara. As required by law, LPS (controlling 99.996%) must divest its stake at minimum price IDR6.7 trillion equal with bail out cost  the lenders at the 2008 financial global crisis.

Bumi Resources raise US$400 million by sell stake

PT Bumi Resources Tbk plans to divest its 20% stake in PT Bumi Resources Minerals Tbk (BRMS) in the third quarter of 2012 for raise US$400 million.

Investor from Europe and China are interested to buy Bumi Minerals. Bumi Resources now controls 87% stake in Bumi Minerals.

The divestment of Bumi Minerals becomes source of fund for Bumi Resources to reduce its debt this year. Bumi plans to cut its debt to US$1.9 billion this year from current US$3.8 billion. 

Bumi Resources previously said it targets to repay US$750 million debt this year, consisting of loan to China Investment Corporation (CIC) amounting US$600 million and commercial loan amounting US$150 million.

Chairul Tanjung acquire 10.9% stake in Garuda

Emerging Indonesian business group CT Corp, own by Chairul Tanjung, looks set to become the biggest private shareholder in national flag carrier PT Garuda Indonesia Tbk after it became sole bidder for a 10.9 percent stake in the airline. Chairul Tanjung take over the share through Trans Airways.

As much as 10.9% or 2.47 billion stocks of PT Garuda Indonesia Tbk which held by three IPO underwriters are sold at IDR620, 17.33% lower than initial price offered to the consortium led by national businessmen.

Of the three Garuda IPO underwriters, PT Bahana Securities and PT Danareksa Sekuritas were known to have signed a trade confirmation with buyer’s consortium Tuesday night. The stake, currently owned by three state-brokerage firms, Mandiri, Bahana and Danareksa, is valued at least IDR1.5 trillion (U$163.28 million).

The government owns a 69 percent stake in Garuda after it launched a disappointing $532 million initial public offering in Feb. 2011 when the share price collapsed on debut due to its high valuation and political interference in its pricing.

Govt worries DBS acquisition curb Danamon role

DBS Group, Asia's largest bank by assets and employs 18,000 people, acquisition plan over PT Bank Danamon Indonesia Tbk,  Indonesia’s sixth-largest, began to make the government concerned particularly the potential narrowing domination of the national bank in issuing future policies and operational management.
According to Deputy Minister of Finance Mahendra Siregar, the acquisition might affect macro and micro economic stability and Bank Danamon credit growth projection.
Nevertheless, Ministry of Finance will support Bank Indonesia and Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) decision over DBS plan to acquire Danamon shares from Temasek Holding.

DBS was announced on 2 April it has agreed to pay $7.24 billion to take control of its Indonesian counterpart, According to the terms of the deal, DBS will pay around $4.9 billion of the total sum in shares and the remaining amount in cash.

Garuda buy Airbus A330 jets worth US$2.5 billion

Indonesia's flag carrier, PT Garuda Indonesia Tbk will buy 11 A330-300 jets worth Us$2.5 billion. Source of fund to execute the deal from banks and lessor. The deal sgning set to be unveiled by British Prime Minister David Cameron. 

The new jets would increase the number of long houl A330. The jets A330-300 sells for US$231 million each, but buyer typically pay less. The jets powered by Roll Royce engine and product by Airbus, own by British, Germany, France, and Spain.

In February, Garuda signed a purchase agreement for 18 Bombardier CrJ1000 NextGenaircrafts from Canada worth US$2 billion. It may purchase another 18 aircrafts, making the total of 36 aircrafts.

The company plans to seek a loan of US$ 200 million. The fund is intended to finance the company's fleet procurement from 2012-2016 which have been approved during the general meeting of the extraordinary shareholders.

Bukit Asam Transpacific start coal railroad in 2013

PT Bukit Asam Trans Pacific Railway (BATR) is targeted to start construction of coal railroad in 2013 and operate commercially in 2016. 

CEO Bukit Asam Tranpacific Rudiantara says the company still discussing financial structure with the lender. The company secure US$1.3 billion loan from China Development Bank, ICBC, Bank of China and Exim Bank of China. 

Total cost to build coal railroad woul be US$2 billion, with US$700 million in investment coming from shareholders. BATR is joint venture between Rajawali Asia Resources, a unit of the Rajawali Group and PT Tambang Batubara Bukit Asam Tbk, a stqte coal miner. 

Rajawali Asia controls 90% share of BATR and Bukit Asam 10%. A part of the loan agreement with the banks, China Railway plans to control 10% shares of BATR.Rajawali share will be decline to 60% and Bukit Asam's stake will rise to 30%.

Mandiri plans to raise US$400 million loan

The biggest lender in Indonesia by assets, PT Bank Mandiri Tbk plans to raise Us$200 milion-US$400 million loan. The company has programme to reduce recap bond from balance sheet. 

Currently, Bank Mandiri held IDR78 trilion recap bond. The lender who wish to give loan for Bank Mandiri had to buy recap bond at par price. The corporate action in line with Bank Indonesia plans to reduce recap bond held by banking entity. Bank Mandiri was submited the plans to central bank.

Net profit at Bank Mandiri rose 33 percent to IDR12.2 trillion ($1.3 billion) from a year earlier.It reported IDR 552 trillion in total assets. Net interest income — the money earned from loans after deducting interest payments to depositors — rose 11 percent to IDR21.78 trillion last year from IDR19.54 trillion in 2010.

OCBC NISP plans rights issue IDR 1.5 trilion

PT Bank OCBC NISP Tbk was submitted rights issue proposal with pre emptive right worth by IDR1.5 trilion to Capital Market and Financial Institution Supervisory Agency. OCBC overseas Investment Pte. Ltd., who hold 85.1% share of Bank OCBC NISP will act as a stand by buyer.

Through the rights isuue VI, the bank will offer share with nominal value IDR 125 at IDR1000 per share. The rights issue will offer ratio 500 : 107 which that shareholder controlling 500 share will have 107 pre emptive right to acquire 107 new share priced at 1000 per share. The bank projected through the right isuue, capital adequacy ratio will strengten to 15% by the end of 2012.In the meantime, rights issue plan has to be approved by shareholder meeting

Pegadaian offer IDR1 trilion bond

PT Pegadaian, Indonesian pawnshop, offering IDR1 trilion bond with 1 year-7 year tenor after issuing IDR1 trilion bond last year. Pegadaian Director's of Finance Budiyanto said the bondissuances is parts its self registered bond series 1/2011 worth IDR2 trilion. PT Bahana Securities and PT Danareksa Sekuritas help Pegadaian as a underwriter. The self registered issuance is legal based on the capital market supervisory regulation No.IX.A.15, allwoing issuer to sell bond in several phases with once regulation for 2 years. Pegadaian also preparing for initial public offering after change the status from perusahaan umum (perum/general company) to perseroan terbatas (PT/limited company) based on goverment regulation on 13 December 2011. The company plans to sell the shares in the first half of 2012.

GMS to buy 12% Golden Mines shares

GMR Infrastructure Ltd (India), through its subsidiary GMR Singapore, will buy 12% stake in PT Golden Energy Mines Limited valued at IDR1.76 trillion, which is released in an initial public offering.

Thus, Golden Mines shares are sold to the public in an IPO will be only 3%, or 176.47 million shares worth IDR441.17 billion. As it is known, Golden Mines will release 882.35 million shares or 15% to the public at a price IDR2,500 per share.

Meanwhile, GMR Singapore will control a total of 30% shares in Golden Mines.Earlier, GMR Singapore has announced the purchase of 18% shares owned by PT Dian Swastatika Sentosa Tbk at Golden Mines worth IDR2.64 trillion.

Dian Swastatika is the holder of 99.99% shares in Golden Mines, before the IPO of Golden Mines.

GMR entered Golden Mines buy purchasing its 18% shares which owned by Dian Swastatika, and 12% shares will be buy from the IPO. Total GMR fund is US$500 million and the public is US$50 million.

GMR announced it would close the funding of new investment in the next few years, aided by Nomura Holdings Inc. as the financial advisor. The proceeds from GMR Singapore will be used to increase the portfolio, and to acquire mines as well as to make direct investments.

Then, the funds will be used as the capital of another subsidiary namely DSSP Power in South Sumatra to work on a 2x150 megawatt power plant project with PLN, which requires funding of US$400 million. Meanwhile, Golden Mines’ IPO proceeds will be used for capital expenditure by 65% in order to increase coal production

Shinhan Bank take over CNB Bank

Shinhan Bank, the lending unit ofShinhan Financial Group Co., agreed to buy a 90 percent stake in Indonesia's Centratama Nasional Bank for 40 billion won. Bank Indonesia official denied to comment for the corporate action.

Glencore may take over Bumi Plc

Glencore International Plc, the world's largest publicly traded commodities supplier, may consider buying a stake in Indonesian coal producer Bumi Plc.

PT Bakrie & Brothers Tbk, with 47 percent of Bumi, breached two conditions of a US$1.35 billion bridge loan with Credit Suisse Group AG and a group of investors in recent weeks, putting it in default.

The lenders and borrower are discussing options including a combined refinancing, asset sale and extension of the loan. A sale of a stake in Bumi, which has exposure to the world's largest and fastest-growing stand-alone export thermal coal business, is likely to generate considerable interest.

Glencore is the most obvious suitor, given its existing relationship with the Bakries and off-take agreement with Bumi. Indonesia's Bakrie Group is a palm-oil-to-property family empire founded in 1942 by Bumi Chairman Indra Bakrie's father.

Bakrie & Brothers said it's considering repaying or restructuring a US$597 million loan arranged by Credit Suisse, or a combination of the two option.

Glencore, Rothschild Credit Suisse may be entitled to take over the Bakrie's stake in Bumi should the loan default, according to last year's prospectus for Vallar Plc, as the company was known before its London initial public offering.

Bumi owns about 85 percent of PT Berau Coal Energy and a 29 percent stake in PT Bumi Resources. Bumi is trading about 25 percent below its IPO price, and its value has dropped by about a third since the end of June. Glencore bought a 4.8 percent stake in Bumi Resources last
June through a $200 million equity swap agreement with Bakrie & Brothers. Glencore sold $10 billion of new shares in an IPO in May to help repay debt and fund acquisitions.

Bumi, founded last year by Nathaniel Rothschild, reported underlying profit of US$54 million in the first half, driven by record thermal coal prices. Operating profit was $62 million on sales of US$478 million, the Jersey, Channel Islands-based company said on Aug. 17 in its first six-month earnings report.

Vallar sold 707 million pounds of new shares in last year's offering at 1,000 pence apiece. Bumi said in a statement this week the bridge loan was due for repayment in the near future and Bakrie & Brothers was in talks to restructure the facility.