AmCapital News Highlights

United Tractors (UNTR, Rp17,550) Heavy equipment sales targeted up to 5,500 units
United Tractors or UT, the subsidiary of Astra International, targets heavy equipment sales to rise to 5,500 units this year from around 3,400 units last year, Director Hendrik Kusnadi Hadiwinata said. Sales this year may increase to about Rp20tn versus around Rp13tn, he said. On capital expenditures, UT may spend between US$250mn and US$300mn, he added. – Bloomberg

Medco Energi Internasional (MEDC, Rp2,825) New oil discovery of at Libyan Area 47 block, Senoro-Donggi may be decided by next week
Medco Energi said its subsidiary had another oil discovery in the Area 47 block, which is the 13th discovery since its exploration activity starting on September 2006, President Director Darmoyo Doyoatmojo said. The company said the new discovery is from the exploration well L1-47/02 that flows 1,942 barrel of oil per day. Currently Medco and its partner had drilled 21 wells in the block with oil and gas discoveries. Additionally, on the company’s LNG and gas field development of Senoro-Donggi, Indonesia Vice President Boediono was reported to start meeting with Minister of Energy and Mineral Resources and state-owned Pertamina as well as PLN to discuss about the pending projects. Medco has 50% stake in Senoro block and 20% stake in the Donggi Senoro LNG. – Investor Daily

Elnusa (ELSA, Rp510) Seeking US$186mn of new contracts
Oil and gas service provider Elnusa said it is seeking some contracts ranging from geoscience, drilling, and oilfield totaling US$186mn this year, local newspaper reported. If secured, this will add the company’s current year contracts on hand worth some US$140mn, Corporate Secretary Heru Samodra said. The company may spend US$75mn for capital expenditure, of which 30% will be financed by bank loans, the report said. – Investor Daily

Matahari Department Store (LPPF, Rp2,450) Launched tender offer at Rp2,706 per share
Meadow Indonesia announced Tender Offer (TO) for Matahari Department Store (MDS) shares at a price of Rp2,706 per share for at maximum approximately 58.5mn shares, according to the prospectus in the local newspaper. Effective date is May 6, 2010. The shares’ offering period will be starting from May 7, 2010, to May 14, 2010 with payment date scheduled on May 20, 2010. The company appointed CIMB Securities Indonesia in the TO process. – Investor Daily

Bakrie Telecom (BTEL, Rp135) Expansion into wireless broadband, denied merger with other telecom player
Fixed wireless operator Bakrie Telecom or BTel plans to enter the wireless broadband business in 3Q10, using proceeds from an April bond sale, Amit Bose, the company’s head of strategic initiatives, said. BTel, which has mobile-phone customer base of 10.5mn in 2009, sees the Indonesian broadband wireless Internet market as “an open playing field right now” and the company is “very focused” on taking the opportunity, said Bose.
Bose also denied speculation that BTel has plans to merge with Telkom or any other mobile-phone operator in Indonesia. Sarwoto Atmosutarno, president director of Telkom’s mobile-phone unit Telkomsel, said Jan.8 a merger between operators could occur this year as 11 players in the cellular phone services business are too many for Indonesia. It’s hardly likely” parent Bakrie Group “will give up” the telecommunication business, Bose said. – Bloomberg

Bhakti Investama (BHIT, Rp315) Entering the coal business
Bhakti group-controlled investment company Bhakti Investama said its subsidiaries signed an agreement with Titan Mining Resources Investment to acquire eight coal concessions in South Sumatra. The eight concessions have potential resources of between 750mn tons and 1bn tons, the company said. – Bloomberg