INVESTING IN COAL BUSINESS

The heat was tempted Coal Business
Performance of heavy equipment company PT Intraco Penta Tbk (INTA) in 2009 was shiny. On the condition that the more elegant with its acquisition action series that continues this year 2010.

Currently, INTA shoot three coal mining areas of Borneo, and Sumatra. To accelerate this acquisition, INTA has budgeted U.S. $ 100 million. There are some external funding options to finance these corporate actions.
INTA target acquisition will be realized within this year 2010. However, information about the plan is still minimal.

What is clear, Finance Director Fred L. INTA Manibog said it plans to acquire coal mines to synergize with its main business lines of business as a mining contractor.

Moreover, in 2009 and INTA has just acquired two mining contractor, PT Terra Factor Indonesia and PT Indonesia Columbia Chrome. Terra Factor INTA mastered a way to convert its accounts receivable valued at Rp 164.42 billion to 91.64% ownership share.

For that Terra Factor published about 27 403 new shares at Rp 6 million per share. The number of shares of Terra Factor before only 2,500 shares.

Meanwhile, the Columbia takeover scheme is simpler. INTA purchase approximately 99.99% stake in Columbia for Rp 125 000 per share or a total value of USD 4.99 billion. Columbia is a service company in the field of component repair services and spare parts of heavy equipment.

Two actions are considered to be affiliated corporation, as owner of the shares of Terra Factor and Columbia also has shares INTA. For example, Peter Halim, who has a 30% stake in Terra Factor, also had a 2.37% stake in INTA.

While the sources of funding the acquisition entirely from internal cash INTA. Fund cash and cash equivalents as of December 2009 INTA recorded USD 58.61 billion. Furthermore, targeting the acquisition of INTA's revenue increased to Rp 1.2 trillion with net profit of Rp 60.52 billion in 2010.

Fred added, two new operating subsidiaries have their own customers. Like Columbia, which not only serve the INTA. Columbia also has customers of other companies, such as rival and Kideco, often ordering spare parts to them. Unfortunately, their production is still small. Its assets were only just USD 20 billion, said Fred.

While Terra Factor already has 100 units of heavy equipment for mining coal. Factor Terra also has used heavy equipment sales business, said Fred.

INTA also have children uasaha engaged in financing named PT Intan Baruprana Finance (IBF). In 2009, the company recorded a revenue of USD 29.1 billion.

Indeed, the name is not as famous as the company INTA other heavy equipment. However, without a big name, a seller of heavy equipment brands Volvo, Ingersoll-Rand, Bobcat, Loaders Mahindra Tractors and SDLG menggeber successful year in 2009 and net income. Net profits in 2009 and then rose 63.34% to Rp 37.47 billion. This condition occurs in the middle of a thin decrease of 0.13% of their income to Rp 1.12 trillion.

In 2010, INTA target income went up 20%. Fred insisted, Intraco Penta optimistic could sell around 500 units of heavy equipment during 2010.

The inclusion of Terra Factor and Columbia will also increase the lush growth of INTA performance. I think if it is consolidated, we can increase performance 30% -40%, said Fred.

Considering Option Two: Rights Issue or b
Heavy equipment company PT Intraco Penta Tbk (INTA), the year 2010 this requires funding of about U.S. $ 4.5 million-US $ 5 million for capital expenditures. From that figure, amounting to U.S. $ 2 million-US $ 3 million will be used to construct a new building. The rest for the procurement of heavy equipment.
Finance Director Fred L. INTA Manibog said, to meet these funding requirements, management INTA exploring two options, namely bank loans or issuing new shares (rights issue). Rights issue is still our plan to study, said Fred.

Banking loan option is also still open. Therefore, the ratio of debt to equity ratio (DER), INTA is still safe. Fred said at 1.9 times the DER INTA. Banks usually give tolerance DER of 3.5 to 4 times.

Heavy equipment company that sells branded Volvo, Bobcat, Mahindra, and SDLG will choose the most strategic option. If the rights issue went well, INTA can get U.S. $ 50 million. The proceeds from the rights issue would also be used to acquire coal mining company.