Bumi Resources (BUMI) – Maintain BUY
Price: Rp3,325 – Target Price: Rp3,950
Potential Swap Deal?
- Vallar to acquire 75% BRMS’s stakes from BUMI at Rp850/share
- CB issuance in exchange of BRMS shares.
- BUMI will loose income from NTT.
- Potential swap deal – CIC loan to CB
- Assuming CIC loans reduce up to US$600mn and US$1.9bn, we estimate interest saving around US$124mn-387mn pa.
- BUMI is trading at 15.2x-12.9x PER’11-12, with price target Rp3,950/share.
- Maintain BUY
- Bumi Resources (BUMI) - Potential Swap Deal (78.3 KiB)