Delta Dunia Makmur (DOID, Rp1,030) IPO of Berau Energy expected on August 2010

Delta Dunia Makmur, the parent company of Indonesia’s second largest mining contractor Bukit Makmur or Buma, is waiting for Berau Energy completed its IPO on August 2010, citing President Commissioner Erry Firmansyah, local newspaper reported. After that, Berau Energy will issue the Mandatory Exchangeable Bonds (MEB) on beginning 2011, the company will then swap its stake with Berau Coal (subsidiary of Berau Energy) stake, he said. Berau Coal is Indonesia’s 5th largest coal producer. Berau Energy plans to float 20-30% stake and it targets IPO proceeds of US$300mn. Delta expected to own more than 50% stake in Berau Coal, Firmansyah said. Delta will issue new shares without the right to subscribe worth Rp10tn, the report said. Separately, another local media, citing unnamed source, reported Erry Firmansyah may leave Delta to be member of Board of Commissioner in Astra International. (Investor Daily, Bisnis Indonesia)