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TOP GLOVE TO  INVEST US$1 BILLION IN RUBBER HAND GLOVE PROJECT. Malaysia's hand glove producer Top Glove Corporation Bhd plans to build a large rubber hand glove factory in North Sumatra  with an installed capacity of 2 billion pieces  per year. The project will cost around US$1 billion. Ahmad Saifun, the chairman of the Indonesian Rubber Glove Manufacturer Association (IRGMA) said Top Glove will need to have 2,000 production lines each with a capacity to produce 1 million - 2 million pieces of rubber hand glove a year. Ahmad Saifun, the Malaysian company will make Indonesia the production base for rubber hand gloves for exports. Based on the record of IRGMA, local company accounted only for 30.3% or US$ 2 billion of the country's total exports of rubber hand gloves valued at US$ 6.6 billion per year.

INTRACO SETS ASIDE US$ 100 MILLION TO ACQUIRE COAL MINES. Publicly traded heavy equipment distributor PT Intraco Penta said it is looking for coal mines to be acquired in Kalimantan and Sumatra.  It said it has set aside US$100 million for the acquisition Intraco will launch rights issue  hoping to raise Rp500 billion (US$55.5 million) to help finance the acquisition in the second quarter of this year, a company director Fred L. Malibog said.     The company is looking for mines with a capacity to produce 60 million to 120 million tons of coal each a year, Fred said. The company also is eyeing a nickel mine concession, he said, adding the company is in the process of conducting due diligence studies. On March 30, the company completed the acquisition of Terra Factor Indonesia and Columbia Chrome Indonesia at a price of Rp 170 billion through debt equity swap.

PT BUMI RESOURCES TBK (BUMI) PLANS IPO FOR SUBSIDIARY TO RAISE US$1 BILLION. BUMI RESOURCES, the country's largest coal producer, is reported planning initial public offering for its non coal subsidiary to raise up to US$ 1 billion by the end of this year. The subsidiary, PT Bumi Resources Mineral (BRM), which has business units in Indonesia and Africa, produces gold, copper, zinc, and iron ore in Indonesia and Africa. Credit Suisse and JP Morgan have been named advisors, the report said. BUMI reported net profit at US$ 190.45 million in 2009 down 48.76% from US$ 371.69 million in 2008. The net profit of he company was cut  by amortization  for the removal of soil from land surface which was delayed for several years.  The cost of amortization, however, was offset with foreign exchange gain   and sales of a number of non productive assets. Without the amortization cost the company would have posted US$ 448  million in net profit.

TUGU RE EYEING 58% RIS EIN  UNDERWRITING.  Reassurance company PT Tugu Reasuransi is eyeing a 58% increase in its underwriting income  this year to Rp57.38  billion from Rp36.32 billion last year by making a number of improvements and evaluation of risk analysis.  In 2009, the company posted a significant  increase  of 127%  in underwriting income (risk insurance)  from Rp 15.9 billion in 2008. PT Tugu Reasuransi President Moro W. Budhi said the target could be achieved with effective strategies. Its finance director Drajat Irwan-syah said last year claims rose 22% to Rp l60.23 billion from Rp l31 billion in the previous year. The increase in claims came with a significant  increase in premium income. He said equity rose last year 10% to Rp 92.56 billion   from Rp 84.19 billion in the previous year. Assets were valued at Rp 303.17 billion, up 17% from the previous year's Rp 260 billion.

MEC READY TO BUILD US$1 BILLION COAL RAILWAY  PROJECT IN E. KALIMMANTAN.  MEC Holdings, a subsidiary of the Dubai-based Trimex Group, said that it is ready to start construction of its US$1 billion railway project in East Kalimantan. MEC has completed acquiring land for the project and construction of the 130-kilometer track between a coal mining concession in Muara Wahau and the coastal town of Bengalon   could begin in the first half of this year, a company official said. The railway project is part of a total investment of US$5.2 billion planned by MEC in that province including a coal terminal, an aluminum smelter and a power plant. Earlier MEC said the projects would be developed by a joint venture with Ras Al Khaimah Investment Authority and India's aluminum producer National Aluminum.   MEC has said it expects the first commission of cargo train in 2011.

CHAIRUL TANJUNG'S PARA GROUP TO ACQUIRE 40 OF CARREFOUR INDONESIA. The Para Group through its subsidiary PT Trans Retail has signed an agreement to acquire 40% of PT Carrefour Indonesia, the Indonesian unit of French retail giant Carrefour SA. Trans Retail, which operates in media, lifestyle, and retail and entertainment business, will become the single majority and controlling shareholder in Carrefour Indonesia, Chairul Tanjung, the founder of the Para Group, said. After the deal other shareholders will include Carrefour SA holding 39% Carrefour Netherlands BV 9.5% and Onesia BV 11.5%.  A consortium of four foreign banks - Credit Suisse, Citibank, JP Morgan and ING  have agreed to provide US$ 350 million to finance the acquisition, which estimated to cost up to Rp4 trillion  (US$ 444 million), the newspaper Investor Daily said. A sales and purchase and a joint venture agreement was signed in Paris on March 12, Tanjung said.  It was agreed that Tanjung will be the chief commissioner of Carrefour Indonesia with two retired generals of the army and police to seat in the board of commissioners representing Trans Retail. Apparently Carrefour SA needs strong Indonesian partner to deal with a legal process  it is facing over monopoly charges after its acquisition of a local supermarket chain, analysts said.   The country's largest retail company won the first battle in the South Jakarta district court, but the business competition watchdog (KPPU) appeals to the Supreme Court. Now Carrefour Indonesia has 79 outlets including 63 hypermarkets and 16 supermarkets.


CORPORATE NEWS IN BRIEF
April 2010
 
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