AKRA Expansion plan, IHSG Potentially Testing Support Levels.
Dow Jones fell 0.24% to close at 22.296.1 triggered by the decline in shares of the IT sector. The threat of Korea North on the statement of the President of America overshadowing the global market movement. EIDO down 1.08% to close at 26.66 potentially overshadowing the market movement at the session This morning.
AKRA - Expansion plan
PT AKR Corporindo (AKRA) will build a power plant with a capacity of 500 MW until 2023. The development will begin after completion of 23 MW electricity development in Java Integrated Industrial and Port Estate (JIIPE). The source of funds to build a 500 MW power plant comes from internal cash and bond issuance. AKRA will also use the proceeds from the divestment of three Chinese port assets to Beibu Gulf Port Co. Ltd. amounting to Rp 865.56 Billion.
INDY - Acquisition of 45% of Kideco shares
PT Indika Energy (INDY) plans to increase its share ownership in PT Kideco Jaya Agung. Through its subsidiary, PT Indika Inti Corpindo, INDY signed a separate share purchase agreement with Samtan Co. Ltd. and PT Muji Inti Utama. INDY purchased a total of 45% Kideco shares with details of 40% of shares purchased from Samtan valued at US $ 610 million and 5% from Muji valued at US $ 67.5 million resulting in total transactions reaching US $ 677.5 million. Thus, after the transaction, INDY will become the majority shareholder of Kideco with a total shareholding of 91% while Samtan retains ownership of 9% of Kideco shares. The source of funding for the purchase of shares comes from third parties and INDY opens the opportunity to issue bonds. INDY Management expects the transaction to be completed in 4Q 2017.
MDKI - Business diversification
PT Emdeki Utama (MDKI) will diversify its business by using an IPO proceeds of Rp 187 billion. The MDKI will build two new factories to produce two new products namely carbide desulphuriser (raw material for steel production) and high-grade silica alloy. Both factories are targeted to be completed within 2 years. Both factories are expected to contribute around 30% to 35% of MDKI's revenue. So far, carbide desulphuriser and silica alloy products have not been produced domestically, so domestic demand has been fulfilled from imports.
TPIA - Performance 1H 2017
PT Chandra Asri Petrochemical (TPIA) booked a net profit increase of 32.1% Yoy to US $ 174 Million in 1H 2017 Vs US $ 131.7 Million in 1H 2016. The performance increase was supported by net revenue increase of 35.5% Yoy to US $ 1.19 Billion in 1H 2017 .