NISP Indo Tambangraya Megah sold at Rp36,150 (ITMG, Rp37,100, Hold)

· Banpu Mineral sold 8.72% of ownership in ITM, raising Rp3.56tn or equal to Rp36,150/share. The figure is disappointing as it stood at the lowest range on its offering range at Rp36,150 – Rp38,500 per share.
· The transaction is settled yesterday and ITM cited that buyer is an institutional investor without collaborating more on this.
· As the proceeds were paid to Banpu Mineral and the amount also has no impact on control, as such, there is no impact on the company’s commitment and also cash position.
· Currently, ITMG is trading at 2011F PER of 12.8x and EV/EBITDA of 7.6x, Hold.