Banpu Aims to List Indonesian Affiliate
By Bangkok Post, Thailand
Jan. 11–Banpu Plc aims to list its Indonesian coal mine on the Jakarta Stock Exchange (JSE) this year to minimise the risk of being a foreign company and expand its business in the country.
The SET-listed mining and energy company would hold 80 percent of the shares in the Indonesian operation after the listing, according to Banpu chief executive Chanin Vongkusolkij. The shares to be listed in Jakarta would consist of another 15 percent now held by Banpu and 5 percent held by its allies.
“The rights of Banpu’s operation in Indonesia would be on par with those of local companies if the plan materialises,” Mr Chanin said at a briefing for analysts yesterday.
He added that the listing in Indonesia would enable the company to apply for business licences that foreign firms normally could not obtain. More importantly, he said, Banpu would be able to raise funds for the purchases of new coal mines in Indonesia.
The company has targeted a growth rate of 20 percent this year, from revenue estimated at 30 billion baht in 2006, thanks to increasing coal prices.
Preliminary figures showed Banpu produced an estimated 21 million tonnes of coal last year at an average selling price of US$35 a tonne, according to Mr Chanin.
The company is now assessing the impact on its business of the 30 percent reserve requirement for foreign capital inflows imposed by the Bank of Thailand.
Mr Chanin acknowledged that there may be an effect, and that the economic impact of the New Year’s Eve bombings in Bangkok could also figure in the company’s planning.
“We aren’t sure whether our business plan would be set back as a result of the two factors,” he said. “While the effect of the central bank measure is still unclear, the bombing situation has already eroded investor confidence.”
The company has not adjusted its business plan yet because it was designed for the medium and long term, focusing on overseas business expansion.
Mr Chanin said Banpu was still able to maintain control over its financial costs because interest rates of previous loans were fixed.
The financial costs of any new loans could be higher, but the company would borrow from overseas banks to invest in foreign countries, thus reducing any impact from local capital controls, he said.
Banpu shares closed yesterday on the Stock Exchange of Thailand at 167 baht, down three baht, in trade worth 405.6 million baht.
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