Market Flash: iSHARES MSCI Indonesia Investable Market Index Fund (EIDO:US) PRICE: 28.530 USD Down -0.360 (-1.246%) >>> BI: Rupiah Melemah Akibat Kondisi Eropa >>> Pertemuan FED pertimbangkan langkah baru dorong ekonomi >>> KIJA akan Terbitkan MEN Valas USD150 Juta >>> PT Indika Energy Perusahaan Teladan Dunia 2011 >>> Govt Promises Revision of Cost Recovery Regulation >>> BPMigas Demands PGN to Pay US$6 per MMBTU >>> Jababeka to Raise US$150 Million from Debt Markets >>> SCG Chemicals buys Chandra Asri >>> Solusi Tunas eyes Rp380 bio IPO >>> SMR Utama scouts Rp300 bio IPO >>> Alam Sutera picks two bond arrangers >>> ASII Tetap Rajai Penjualan Mobil Agustus 2011 >>> Perusahaan Thailand kuasai Saham TPIA senilai Rp 3,76 Triliun >>> Agis Main ke Tambang, Sahamnya Masuk Dalam Pengawasan >>> ACES Mendekati The Northern Agar Mau Kurangi Kepemilikan >>> IHSG masih harus berjuang terus bertahan diatas MA200 >>> Melirik Peluang Akumulasi di Saham Perbankan >>> Analisa Saham BUMI: Kuat Bertahan & Berpeluang Kembali Uptrend >>> Analisa Saham JSMR: Bertahan Di Support, What Next? >>> INDF Tertahan Di Area Support Kuat, Berpeluang Rebound >>> ASII Break Minor Support, Sell on Strength >>> ADRO Membentuk Descending Wedges, Berpeluang Rebound Terbatas >>> Wall Street ends flat as early gains evaporate >>> Fed begins policy meeting, tiptoes toward easing >>> Fed meeting to help decide on long-term Treasuries >>> Greece Makes 'Good Progress' in Reform Talks: EC >>> China worried Europe debt crisis will hit trade >>> China could roll out 4.65tr yuan stimulus package >>> IMF sees Mideast stagnation >>> NYMEX-Crude ends higher at Oct contract expiry >>> Asian Crude Palm Oil Up On Technical Buying, Soyoil >>> Foreign net Sell - 61.785.746

Jumat, 17 Juni 2011

Bumi Resources - Alert: Risks and Opportunities - Citigroup

We came away from a meeting with the company less concerned over the impact of Bumi’s planned 75% stake divestment in Bumi Resources Mineral (BRM).

The planned issuance of US$2.1bn convertible bonds by Vallar to pay for the acquisition of BRM undoubtedly creates a substantial overhang on Bumi’s share price over the next few months. The main uncertainties would be the pricing of the CBs once it’s listed some time in 3Q11. There are also substantial concerns over earnings dilution. However, we opine that the merits of the transaction, albeit via non-cash payment, outweigh the demerits.

First and foremost, the divestment paves way for the realization of Bumi’s major deleveraging efforts. If Bumi can execute the deleveraging plan in a timely manner, we think the stock’s valuations could substantially re-rate given market’s lingering concerns over the company’s high leverage and expensive CIC debts.

The annual interest savings from the first batch of planned prepayments of US$600m debt from CIC two years early in October 2011 would amount to US$114m (excluding the US$30m penalty). The savings alone should more than offset the deconsolidation of Bumi’s attributable annual earnings from BRMS of c. US$65m. Bumi will also receive annual coupons of US$41m from the convertible bonds. Moreover, Bumi is likely to book a substantial one-off gain from the divestment as the 87% stake in BRMS is carried at US$1.5bn on Bumi’s book. Finally, the deconsolidation of BRM would reduce Bumi’s net debt by c. US$180m from US$4.6bn at the end of 2010.

We maintain our Hold rating on the stock with target price of Rp4,200, which is based on 2012E EV/EBITDA of 4.8x – a 40% discount to Adaro’s target multiple.

Tidak ada komentar:

Posting Komentar