Today's Headlines - 17 Juli 2014

Antam and Timah Reduce Investment (ID)  ANTM cut capital expenditure this year by 55% to Rp1.8 trillion from the original plan of Rp4 trillion, due to the current commodity price environment that has not been recovered. For 2015, the company set up capex of around Rp1.2-1.5 trillion. Moreover, TINS also cut this year capex by 30% to Rp840 billion from the original plan of Rp1.2 trillion. The company will prioritize capex to increase production and improve tin selling price. ISAT to Divest 7,000 Towers (BI)  To fix the financial structure of the company, Indosat plans to sell around 7,000 telecom towers. The plan would be implemented as soon as next year following ISAT’s completion of network modernization by the end of this year. Until now the company does not yet have an idea of the release mechanism of the tower, as well as the selling price of the tower. PGN Officially Enter Shale Gas Business in the United States (BI)  Perusahaan Gas Negara (PGAS), through its subsidiary PT Saka Energi Indonesia, officially acquired 36% participating interest shale gas area faskem in the United States from Swift Energy Company valued at USD175 million or equivalent to Rp2 trillion. Transactions conducted on Tuesday consists of a cash payment worth USD125 million and the Swift’s portion for field development costs amounted to USD50 million. Through this acquisition, the company expects to receive many benefits including technology related to knowledge about shale gas development. SMGR Expect Lower Margin (BI) SMGR predicted net profit growth slowed slightly due to increased operating costs due to the increase of electricity tariffs and transportation costs. By the end of 1H14, the company has raised the ASP by 4-5%, but the increase was still less than the cost of production increased of 6-7%. Throughout 1H14, the company posted a net profit of approximately Rp2.7tn with revenues reaching Rp12.6tn. SMGR is targeting domestic sales in 2H14 to increase by 6%y-y. TBIG secures billion-dollar funding for XL towers buy (TJP) PT Tower Bersama Infrastructure Tbk (TBIG) prepares about $1.8bn to acquire number of towers owned by PT XL Axiata through open bidding. TBIG already pocketed $1bn in loans and will issue bonds and sustainable bonds worth $500mn and Rp 3.25tn, respectively. TBIG didn't elaborate on how many towers would be on offer or the valuation. XL itself will use the fund to pay off part of the firms $865mn debt used to acquire Axis. The possibility of canceling the bid remain if the expected price isn't in line with tower's profitability. http://dmia.danareksaonline.com/BeritaRiset/NewsReader/2816