Corporate News in Brief - February 2009

ANCORA PLANS TO ACQUISITION IN ENERGY SECTOR. Ancora Capital Management (Asia) Ltd has set aside US$300 million to finance acquisition of coal mining and oil and gas companies this year. The fund management company also plans to expand business to toll road infrastructure, Gita Wirjawan, its co-chairman said. Funds will be available in two to three months especially from Middle-east, Brunei and Malaysian financers, Gita was quoted as saying. The prospects are still goods for business in the mining and energy sectors , therefore, the company chose to strengthen investment in the two sectors, he said. Meanwhile business opportunity is open in the infrastructure sector in the country especially in toll road, he said. Earlier PT Ancora Indonesia Resources, which is controlled by Ancora Capital , was reported planning to acquire PT Bromindo Nusantara ,an oil and gas drilling company. The US$110 acquisition plan is expected to be concluded this year, he said.

RIO TINTO TO GO AHEAD WITH NICKEL VENTURE . PT Rio Tinto Indonesia said it is set to continue plan to invest in nickel mining project in Lasamhala in the border area of Central and Southeast Sulawesi provinces . Rio Tinto was denying a report that it was considering to quit the US$2 billion project on some clauses in the new mineral and coal law not acceptable to the Australian company. Earlier company source was quoted as saying it could not accept a ruling in the law requiring contractors to hand over 10% of operating profit to the government. Rio Tinto has never criticized the new law, company spokesman Budi Iranto said, adding the company is still studying the new law. The commitment of the company is reflected in its offering US$700,000 scholarships to the local administrations in Central Sulawesi and Southeast Sulawesi, Budi said.

ANTAM SETS ASIDE US$35 MLN TO START WORK IN CIBALIUNG GOLD MINE. PT Aneka Tambang has set aside US$35 million to continue development of the Cibaliung gold mine in Pandeglang, Banten. The state mining company has signed an agreement to acquire a 95% stake of Australia's gold mining company Arc Exploration in PT Cibaliung Sumber Daya (CSD). The agreement will give Antam full control of CSD in which it already has a 5% stake. Bimo Budi Satriyo, the corporate secretary of Antam, said the process of acquisition to cost around US$8 million, is expected to be completed in 4-6 months. CSD has been facing financial difficulties to continue operation and Antam seeing the potential of the company, decided the take over, Budi said. Antam hopes to start producing gold from Cibaliung, which has a reserve estimated at 12.8 tons in the second half of 2010, he was quoted as saying. With production averaging 220,000 tons annually , the mine will last for 6 years.

PERUM PEGADAIAN TO ISSUE BOND. State company Perum Pegadaian that runs pawnshop chains in the country plans to issue bonds valued at Rp1.5 trillion (US$136 million) this year to strengthen its working capital. The plan to issue the bond in June has been sanctioned by the office of the state minister for state enterprises, a company director Wasis Djuhar said. Djuhar, who gave no further details about the bond, said the company had shown a strong growth in turnover in the first month of this year compared with last year. Last year the company recorded a turnover of Rp33.5 trillion, up from Rp21 trillion in the previous year , the newspaper Investor Daily said. Unlike most other businesses , the present crisis has brought on stronger growth in pawning business, Djuhar said. The company , which plans to increase the number of its conventional outlets from 1740 units to 2,740 units and sharia outlets from 160 units to 300 units , is set to post Rp1.2 trillion in gross profit this year up from Rp940 billion last year.

HUMPUSS SETS ASIDE US$150 MILLION FOR CAPITAL EXPENDITURES. PT Humpuss Intermoda Transportasi will spend up to US$150 million this year to buy new ships and for business expansion. For that purpose, Humpuss hopes to raise fund through rights issue, bond sales and private placement and other financing schemes, a company director Permadi Soekasah said. Permadi said the company, which is controlled by Tommy Suharto, the youngest son of former President Suharto, plans to buy three barges this year. The company also plans to acquire 98% of Humpuss Trading from Humpuss Patra Gas, which are both its affiliates. Humpus Intermoda will expand business from sea transport to high speed diesel, coal and power generating sectors. Based on its financial report, Humpuss Intermoda posted Rp698 billion in income in the first nine months of 2008 with equity at Rp1.47 trillion.