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Wednesday, 20 February 13
BAKRIE GROUP LOOKS TO HAVE A CLEAR UPPER HAND - LUCKY ARIESANDI, CFA
 The Bakrie-Rothschild saga is entering its final stage, with Bumi Plc (BUMI LN)’s holders to convene on 21 Feb at 11am GMT to vote on Nat Rothschild’s proposal to oust the majority of Bumi Plc’s current Board of Directors and replace them with his appointees. The proposal needs a simple majority to pass, said Lucky Ariesandi, CFA, an analyst from PT Kim Eng Securities.
Bakrie group looks to have a clear upper hand
Lucky Ariesandi further said in his analysis, Bakrie & Borneo (BB) has 30% of the voting rights in Bumi Plc. Bukit Mutiara/Recapital, considered to be related to BB, owned a 13.1% stake in Bumi Plc but divested its shares just before the showdown. The new buyers too, however, look closely related to BB. Harry Tanoe (who bought 1.7% of Bumi Plc) recently acquired Bakrie’s infrastructure business and is reported to be bidding for Bakrie’s 51% stake in Visi Media (VIVA IJ) to further cement his grip on Indonesia’s media business. Avenue Capital (7.6%) has a longstanding cordial relationship with Bakrie, and currently owns an 11.2% stake in Bakrieland (ELTY IJ). Argyle Street Management (4.2%) is the only new buyer without a track record of working with the Bakrie family. All in all, it appears that BB will be able to secure atleast 39-40% of the voting rights in the upcoming Bumi plc’s EGM. Note that the buyers of Recapital’s stake in Bumi Plc can cast their votes if registration is completed 48 hours before the meeting.
Rothschild’s mission impossible
Nat Rothschild, through NR Investment, owns 14.8% of the voting rights in Bumi Plc, based on the latest filings provided by Bloomberg. Aside from his own shares, NR claims to have the support of Abu Dhabi Investment (4.2%), Schroder (3.5%), and Standard Life (2.1%). This takes his tally to around 25% of the voting rights. Other large shareholders have not publicly announced how they would cast their vote, including Blackrock (6.2%), St James Master Fund (5.6%), and Taube Hodson (4.2%). We think it is highly unlikely NR can muster enough support to advance his proposal, said Lucky Ariesandi.
What will happen if Rothschild wins the fight?
He further said, OJK, Indonesia’s financial services authority, has announced that it might consider a radical change in the BoD of Bumi Plc a change of ownership, hence triggering a mandatory general offer (GO) for Berau Coal (BRAU IJ). As NR is not actually offering to buy Berau Coal, the general offer will be done at a Berau’s average trading price 90 days prior to the announcement of the takeover. This would imply a minimum GO price of IDR220/share. The authority might even require a GO for Bumi Resources (BUMI IJ) although it remains a grey area until now as Bumi Plc controls less than 50% stake in BUMI IJ. If this should happen, the GO price for BUMI IJ should be around IDR650/share.
What will happen if BB wins the fight?
By winning, which translates into all of NR’s proposals failing to obtain majority votes, the board can continue with the separation of the Bakrie Group from Bumi Plc through a share swap of BB’s 23.8% ownership in Bumi Plc (with 30% voting interest) with Bumi Plc’s 10.3% stake in BUMI IJ, plus an additional USD278m in cash payments for Bumi Plc’s remaining 18.9% stake in BUMI IJ. This would not actually be a complete separation, as BB would still own a 25.1% stake in Bumi Plc after the share swap, via suspended voting shares. The future of BB’s remaining investment in the suspended voting shares remains unclear at this stage. But if the share swap goes through as planned, the suspended voting shares should become ordinary voting shares, as the voting interest of the group will fall to less than 30%, according to Lucky Ariesandi.
What is the value assigned to BUMI IJ and BRAU IJ in Bakrie’s proposal?
The value of BUMI IJ’s takeover by BB depends on the share price of Bumi Plc. Using Monday’s closing price of GBP 0.394 and Monday’s exchange rates of IDR 14,980/GBP and IDR 9,685/USD, BUMI IJ would be valued at IDR 1,002/share for the purposes of the takeover. Meanwhile, the proposal to take over 84.7% of Berau for USD 946m translates into an offer of IDR 310/share.
By: Lucky Ariesandi, CFA (this report is subject to KimEng’s disclaimer clause)
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Tuesday, 05 February 13
CHALLENGER DEEP RESOURCES CORP HAS ENTERED INTO AN EXCLUSIVE MINING AND MARKETING AGREEMENT WITH KEM
COALspot.com - Challenger Deep Resources Corp., through its wholly owned subsidiary, PT Bestindo Energy, has entered into an Exclusivity Agreement r ...
Saturday, 02 February 13
ADARO TO INTRODUCE A NEW BRAND OF ENVIROCOAL, E4700, IN 2013
COALspot.com - Adaro Energy, an Indonesian and leading coal producer in country has achieved a record coal production during 4Q12 of 13.31 mil ...
Saturday, 02 February 13
FREIGHT MARKET MAY REBOUND AFTER CHINESE NEW YEAR - VISTAAR
COALspot.com - The freight market was soft and all the indices were down by around 5-7 pct this week.
The BDI was down 6.01 pct closing at 750 po ...
Friday, 01 February 13
ORPHEUS SELLS B26 COAL PROJECTS FOR US$ 2 MILLION TO FOCUS ON SOUTH KALIMANTAN
COALspot.com - Orpheus Energy Limited (ASX: OEG) has announced that it has sold its 51 percent equity stake in the East Kalimantan coal projects, Bl ...
Friday, 01 February 13
HANDY - FLAT; PANAMAX - FLAT TO WEAK; CAPESIZE - WEAK
Handy
The Atlantic market remained stable with no significant movement in rates. Rates from USG to FEast were around USD 17k and Black sea to Feast ...
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- Banpu Public Company Limited - Thailand
- Edison Trading Spa - Italy
- Gujarat Mineral Development Corp Ltd - India
- Borneo Indobara - Indonesia
- Kobexindo Tractors - Indoneisa
- IEA Clean Coal Centre - UK
- Pendopo Energi Batubara - Indonesia
- Leighton Contractors Pty Ltd - Australia
- SMG Consultants - Indonesia
- Essar Steel Hazira Ltd - India
- Eastern Energy - Thailand
- Bhatia International Limited - India
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Heidelberg Cement - Germany
- ICICI Bank Limited - India
- SMC Global Power, Philippines
- Cigading International Bulk Terminal - Indonesia
- Central Electricity Authority - India
- Electricity Generating Authority of Thailand
- Economic Council, Georgia
- Rio Tinto Coal - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Interocean Group of Companies - India
- Port Waratah Coal Services - Australia
- Karbindo Abesyapradhi - Indoneisa
- Latin American Coal - Colombia
- Holcim Trading Pte Ltd - Singapore
- Global Coal Blending Company Limited - Australia
- Attock Cement Pakistan Limited
- GAC Shipping (India) Pvt Ltd
- South Luzon Thermal Energy Corporation
- VISA Power Limited - India
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- Anglo American - United Kingdom
- Bukit Asam (Persero) Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bukit Baiduri Energy - Indonesia
- Indian Oil Corporation Limited
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Indogreen Group - Indonesia
- Kaltim Prima Coal - Indonesia
- Oldendorff Carriers - Singapore
- CIMB Investment Bank - Malaysia
- Independent Power Producers Association of India
- Orica Australia Pty. Ltd.
- Central Java Power - Indonesia
- Krishnapatnam Port Company Ltd. - India
- GMR Energy Limited - India
- Larsen & Toubro Limited - India
- Energy Link Ltd, New Zealand
- Directorate Of Revenue Intelligence - India
- PNOC Exploration Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Star Paper Mills Limited - India
- Medco Energi Mining Internasional
- Meralco Power Generation, Philippines
- Commonwealth Bank - Australia
- Marubeni Corporation - India
- New Zealand Coal & Carbon
- Coastal Gujarat Power Limited - India
- Barasentosa Lestari - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vizag Seaport Private Limited - India
- International Coal Ventures Pvt Ltd - India
- Ministry of Transport, Egypt
- Bhoruka Overseas - Indonesia
- Global Business Power Corporation, Philippines
- Australian Coal Association
- Neyveli Lignite Corporation Ltd, - India
- Altura Mining Limited, Indonesia
- GVK Power & Infra Limited - India
- SN Aboitiz Power Inc, Philippines
- Goldman Sachs - Singapore
- Deloitte Consulting - India
- Metalloyd Limited - United Kingdom
- Mjunction Services Limited - India
- Tata Chemicals Ltd - India
- Jaiprakash Power Ventures ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jindal Steel & Power Ltd - India
- Chamber of Mines of South Africa
- Kepco SPC Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Globalindo Alam Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Eastern Coal Council - USA
- Bhushan Steel Limited - India
- Bangladesh Power Developement Board
- Sarangani Energy Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Iligan Light & Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Agrawal Coal Company - India
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- GN Power Mariveles Coal Plant, Philippines
- Meenaskhi Energy Private Limited - India
- MS Steel International - UAE
- Gujarat Sidhee Cement - India
- Miang Besar Coal Terminal - Indonesia
- Lanco Infratech Ltd - India
- Coalindo Energy - Indonesia
- Aditya Birla Group - India
- Bukit Makmur.PT - Indonesia
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Aboitiz Power Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Bahari Cakrawala Sebuku - Indonesia
- Uttam Galva Steels Limited - India
- Vedanta Resources Plc - India
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Binh Thuan Hamico - Vietnam
- Australian Commodity Traders Exchange
- Timah Investasi Mineral - Indoneisa
- Bayan Resources Tbk. - Indonesia
- Malabar Cements Ltd - India
- Ministry of Finance - Indonesia
- Carbofer General Trading SA - India
- CNBM International Corporation - China
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Merrill Lynch Commodities Europe
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
- Energy Development Corp, Philippines
- Semirara Mining Corp, Philippines
- Indian Energy Exchange, India
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- Orica Mining Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Trasteel International SA, Italy
- Riau Bara Harum - Indonesia
- Xindia Steels Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- McConnell Dowell - Australia
- Indika Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- The State Trading Corporation of India Ltd
- Sakthi Sugars Limited - India
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- Baramulti Group, Indonesia
- OPG Power Generation Pvt Ltd - India
- PTC India Limited - India
- Kideco Jaya Agung - Indonesia
- Intertek Mineral Services - Indonesia
- Renaissance Capital - South Africa
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Georgia Ports Authority, United States
- Sree Jayajothi Cements Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Madhucon Powers Ltd - India
- Parliament of New Zealand
- Africa Commodities Group - South Africa
- Planning Commission, India
- Grasim Industreis Ltd - India
- Price Waterhouse Coopers - Russia
- Mintek Dendrill Indonesia
- The University of Queensland
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- Makarim & Taira - Indonesia
- Sindya Power Generating Company Private Ltd
- Wood Mackenzie - Singapore
- Tamil Nadu electricity Board
- Global Green Power PLC Corporation, Philippines
- Antam Resourcindo - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Power Finance Corporation Ltd., India
- Minerals Council of Australia
- Ind-Barath Power Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Maheswari Brothers Coal Limited - India
- Dalmia Cement Bharat India
- Mercuria Energy - Indonesia
- Kumho Petrochemical, South Korea
- White Energy Company Limited
- Siam City Cement PLC, Thailand
- ASAPP Information Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Petron Corporation, Philippines
- Posco Energy - South Korea
- Formosa Plastics Group - Taiwan
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Sical Logistics Limited - India
- Alfred C Toepfer International GmbH - Germany
- Parry Sugars Refinery, India
- Mercator Lines Limited - India
- Sojitz Corporation - Japan
- Ambuja Cements Ltd - India
- Indonesian Coal Mining Association
- Ministry of Mines - Canada
- Therma Luzon, Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Thiess Contractors Indonesia
- Samtan Co., Ltd - South Korea
- Electricity Authority, New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
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