Bakrie stocks price rises 8.12% amid US$600 million debt settlement issue

JAKARTA,
Stock price of 10 companies affiliated to Bakrie Group rose by 8.12% in average prompted by Indonesia shares’ jump.

Based on Bloomberg’s data, PT Energi Mega Persada Tbk booked the largest jump by 21.71% to IDR157, tailed by coal contractor PT Darma Henwa whose stock was up by 12.33% to IDR82.

PT Bakrieland Development increased by 11.21% to IDR119 per share while PT Bakrie Sumatera Plantations Tbk climbed by 9.09% to IDR300.

In the meantime, the stock price of the largest coal exporter PT Bumi Resources Tbk ascended by 8.59% to IDR2,150 per share, triggered by the certainty over Bumi’s US$600 million debt settlement to China Investment Corporation this month.

The agreed export coal price of US$133 per ton also became another driver of such stock price jump.

However, the rise of Bumi and Berau Coal Energy which rose by 2.27% to IDR450 only resulted to 2.35% jump of Bumi Plc in London Exchage.

Entire stocks of Bakrie Group rose after it had oversold, said Head Research at PT Sinarmas Sekuritas Jeffrosenberg Tan.

“It is a technical rebound and relatively fair given the fact that all Bakrie Group’s stakes faced oversold. Bakrie Group’s stocks were also lagging compared to the rise of other companies,” he said.

Investment manager at PT BNI Asset Management Ruben Sukatendel added that the rise was prompted by JCI’s rally in the past three days.

According to him, market players perceived Bakrie Group’s stocks as relatively cheap particularly Bumi Resources.

“Investors see the fair price of Bumi resources at IDR3,000,” he said yesterday.

Bumi’s debt

This jump also proved that market is not much bothered by Bumi Resources’s debt settlement issue.

For the remaining Bakrie Group’s stocks, Ruben perceived benchmark price as made by investors as still high thus the rise of seven stock prices under Bakrie Group as are still fair.

Regarding Bumi Plc, Glencore International Plc and other potential buyers such as Texas Pacific Group and Vitol are reportedly negotiating with Bakrie Group.

This relates to the plan to settle US$1.34 billion debt to Creditu Suisse maturing in March 2012.

The loan is pledged by Bumi Plc at 8.5 pound sterling. The problem is the current price of Bumi plc is 7.4 pound sterling, below the minimum price when the stake is pledged.

In a brief of PT Mandiri Sekuritas, it was still unclear whether Bakrie is willing to lose its most precious aset. Bakrie is currently having 30% voting right in Bumi Plc. (T02/msw)

Source :
Bisnis Indonesia, 13 Oktober 2011
http://www.bisnis.com/articles/bakrie-stocks-price-rises-8-dot-12-percent-amid-us$600-million-debt-settlement-issue