Astra Agro to Completes Acquisition of Kreasijaya (ID)
Astra Agro Lestari (AALI) will soon finalize the 50% stake acquisition in PT Kreasijaya Adhikarya, a subsidiary Malaysia company Kuala Lumpur Kepong (KLK), with a transaction value of IDR 75bn. According to the plan, AALI will absorb the new shares issued by Kreasijaya as many as 75,000 while KLK will absorb 68.500 with nominal per share valued at IDR 1mn. AALI will also provide a loan of IDR 296bn to Kreasijaya.
Four state-owned banks Ready to Rights Issue (ID)
Four state-owned banks will raise additional capital through a rights issue scheme gradually in the next few years. The government will continue to maintain ownership of shares in each state-banks using PMN funds. The government has allocated approximately Rp5.6tn PMN this year for the realization of the rights issue on BMRI. Afterwards, BBNI rights issue also planned to realize next year.
Indosat Prepares to Issue Bonds (BI)
Following a bond issuance of Rp2.5tn and bank loans drawdown around Rp730bn, Indosat is ready to make another bond issuance. ISAT is planning to issue Indosat bonds series I phase II, a part of a series of public offering (PUB) bonds amounted Rp10tn. The proceeds from these bonds will be used for capital expenditures in 2015 and the repayment of debt. The company didn’t disclose the detail of the emission.
Krakatau Posco Expansion: Construction of Plant II Delayed (BI)
Krakatau Posco is still waiting for the development of the global steel prices before continue its phase II plant construction. Krakatau Posco is a joint venture company formed by Krakatau Steel (KRAS) and the South Korean company Pohang Iron and Steel Co. (Posco). Until now there has been no final decision related to strategic business plan for the type of end product to be produced in this plants. In phase I, Krakatau Posco already realized USD3bn investments for steel plant project with a capacity of three million tons per year.
NPL Banks Projected Under 2% at YE15F (ID)
Bank Indonesia projects NPL at YE15F will improve along with the improvement in macroeconomic and faster bank credit growth in the range of 15-17%. NPL projected to be below 2% by the end of this year. Based on data from Bank Indonesia's monetary policy review, the NPL in November 2014 was in the range of 2.4%, deteriorate compared to December 2013 NPL of 1.9%. Read More