NISP Indo Tambangraya Megah to be sold at Rp36,150 – Rp38,500 (ITMG, Rp39,300, Hold)

· It is reported that Banpu Minerals aims for Rp3.56tn – Rp3.79tn from its divestment of 98.5mn share in ITM or equal to 8.7% ownership. Currently Banpu Minerals owns 73.72% ITM, which translates into 832.9mn shares. The offering structure is 73.9mn shares with option to sell additional 24.6mn shares of ITM.
· The news added that Banpu Minerals has appointed Goldman Sachs and several domestic houses to help the transaction. There is no confirmation from the company regarding this transaction.
· Currently ITMG is trading at 2011F PER of 13.6x and EV/EBITDA of 8.1x, Hold.