NISP Bank Mandiri provides incentives for Bakrie Sumatera Plantation (BMRI, Rp6,650; UNSP, Rp360)

· Bank Mandiri provides several incentives for BSP to support the acquisition of Domba Mas. The bank offers the combination of terminable interest and penalty on Domba Mas’ US$78mn loans.

· With this facility, BSP requires only to pay the principal as the bank is restricted to offer loans haircut in restructuring scheme.

· Currently, this acquisition plan is still in negotiation phase as there are difference on loans acknowledgement between BSP and Bank Mandiri.

· Currently UNSP is trading at 2011F consensus PER of 9.9x and EV/EBITDA of 7.3x, while BMRI at 2011F consensus PER of 13.6x and PBV of 2.9x.