JAKARTA: Asiariver Advisors Pte Lte, Singapore-based private equity company, completed an acquisitionfor 15% stake of PT Duta Graha Indah Tbk (DGIK), Indonesia-based constructor, at IDR125 per share from PT Lokasindo Aditama.
The acquisition was completed after implementing crossing transaction of Duta Grahas sharesas many as1.66 million lots or 831.15 million sharesfor IDR103.9 billion on Friday, last week.Based on trading data at Indonesia Stock Exchange (BEI), the transaction was held through a negotiation market at once frequency.In addition, the crossing transaction was realizedwith help froma brokerage firmPT Buana Capital (RF) forIDR125 per share, or 3.3% higher compared tostock price in the last weeks closing session on Friday at IDR121 per share.Asiariver expects the transaction to bring inadditional values and synergy with Duta Graha, it stated in a press release, yesterday.Asiariver views infrastructure industry in Indonesiahave potential and prospective business opportunity, so there is great possibility to enhance its portion shares of Duta Graha.Besides Lokasindo Aditama, other controlling shareholders of Duta Graha are PT Lintas Kebayoran Kota with a portion of 1.83 billion shares (33.03%), Rezeki Segitiga Mas with 500 million shares (9.02%) and public that controls the remaining shares.Before executing the transaction, Lokasindo Aditama owned 1.23 billion shares or 22.35%. On the other word, it still controls 7.35% shares of Duta Graha today.In the meantime, Asiariver is Singapore-based private equity manager focusing on mining, renewable energy, infrastructure, and property. Now, it is exploring for investment in several developing countries as Thailand, Philippine, and Indonesia.As confirmed by Asiariver Director Bimen Fang Qinglin and Duta Graha Corporate Secretary Johan Halim, the acquisition had been completed after undergoing a due diligence against Duta Graha since November 2010.Previously, Duta Graha and Asiariver had held a meeting for discussion on Duta Grahas fundamental condition.In the meeting, Asiariver had communicated its interest to take over the shares, but there were no further decision on the plan. Furthermore, Asiariver discussed further on the plan with shareholders of Duta Graha.Thus, I have no authority to talk about the issue because this is a bilateral issue between Asiariver and the shareholders, Johan said.Higher than estimatedBased on estimation of analysts consensus complied by Bloomberg, Duta Graha will book IDR1.51 trillion revenue and IDR75 billion income (IDR13.54 per share) in 2011.At IDR125 per share, the acquisitionby Asiariver reflects price to earning ratio (P/E)of 9.23 times or higher than 2011 estimationat 8.89 times.Compared to its competitor, PT Total Bangun Persada Tbk, the estimated P/E this year is higher than total P/E estimationat 8.69 times.However, Duta Grahas price to book value (P/BV) is estimated at 0.65 times this year,or lower than totals P/BV estimation at 1.32 times. (T01/msw/NOM)
