Berau Coal Energy (Non Listed)

IPO price may be set at Rp400, borrowed US$400mn from seven banks  The shares of Berau Coal Energy, the holding company that controls Berau Coal,  may  be  floated at the highest price range of between Rp300 and Rp400  per  share following high local demand, local newspaper reported. There  has  been  oversubscription of four times at the strike price (for local investors), citing Vicky Ganda Saputra, an official at Danatama Makmur, the securities  company  that  underwrites the IPO of Berau Coal Energy. Separately,  Bloomberg news reported that Berau Coal Energy borrowed US$400mn  from  seven banks to refinance debt, according to a person familiar with the matter. The facility comprises a US$300mn  term  loan with an average life of 2.65 years and a US$100mn term loan with an average life
of 4.5  years,  the person  said, asking not to be identified as the details are private. The US$300mn loan pays an all-in fee of 475 basis points more than the London  interbank offered rate while the US$100mn loan pays 575 basis points,  the  person  said.  Credit Suisse Group AG led the transaction and contributing lenders included Bank of Tokyo-Mitsubishi UFJ Ltd.,  China Development  Bank  Corp.,  Erste  Group Bank AG, WestLB AG, Indonesia Eximbank and ICICI Bank Ltd., the person said.  –  Bisnis  Indonesia, Bloomberg

Telkom and Elnusa offered Patrakom stakes to Sinarmas

Telkom (TLKM, Rp8,400)
Elnusa (ELSA, Rp345)
Telkom  and  Elnusa offered their combined 80% stake in Patra Telekomunikasi Indonesia or Patrakom to Tanjung  Mustika,  a  company
owned  by Sinarmas group, local newspaper reported. Tanjung Mustika owned 20% stake in Patrakom. The offer will lapse by the end of this week, the  report  said. If Tanjung Mustika decided not to buy the shares, the companies may tender Patrakom shares to interested investors. Patrakom provides  telecommunication network services in the form of data communication, visual, video, and multimedia. – Investor Daily
 

Newmont's gold mine workers in Indonesia started strike , Bumi Resources (BUMI, Rp1,730)

Workers at the Newmont Nusa Tenggara, the Indonesia-based subsidiary of Newmont Mining Corp., the largest U.S. gold producer, began a strike at the Batu Hijau gold and copper mine.  Production  at  the  mine,  Indonesia’s second-largest  copper producer, hasn’t been affected by the strike which began at midnight when about 200 to  300  workers  downed  tools,  Kasan Mulyono, a spokesman at Newmont Nusa Tenggara, said. The company  is responsible for the direct employment of more than 7,000 people, according to its website. Workers planned to stop work for nine days, local newspaper Investor Daily Indonesia reported July 30, citing Zaenuddin Wanden, deputy
head of  the workers union. The strike came after Newmont Nusa Tenggara said it would take legal action against a  ruling  by  the manpower  office  of West  Nusa  Tenggara  province  ordering the company to pay Rp126bn (US$14.1mn) of overtime covering the period from June 2008 to June 2010, the local newspaper Investor Daily said. Newmont Nusa Tenggara  is partly owned by a venture belonging to PT Bumi Resources and  three  local administrations in West Nusa Tenggara. – Bloomberg, Investor Daily

Another oil discovery in Libya , Medco Energi Internasional (MEDC, Rp3,000)

Oil and gas Medco Energi announced another oil discovery in Area 47 Block, Libya, in exploration well 01-47/02 in the Memouniat and  Lower  Acascus formations. The oil reserves at these two formations flowed at the  rate  of between  1,388  and  2,066  barrel per day with gas flowed at the rate of between 0.55 and 2.36 mmscfd, President Director Darmoyo Doyoatmojo said. The discovery is important as this proved that the  Memouniat  and Lower  Acascus  formations had potential of large crude oil reserves in the northern part of Area 47, citing Darmoyo.  This marked the 15th discovery in the block since September 2006, the report said. – Investor Daily