Analisa Saham HRUM | 28 Agustus 2018
IND: Harum Energy: Acquiring the remaining stake in PT Santan Batubara
♦ Harum Energy increased its stake in PT Santan Batubara from 50% to 99.9% at cost of IDR86.4bn (Equivalent to USD5.9m) which translate to valuation of acquisition of P/B of 1.2x and EV/ reserve of USD2.3 per tonne of coal reserve. Harum Energy acquired the 49.9% stake of PT Santan Batubara from Petrosea. We think the valuation of acquisition is at fair price.
♦ PT Santan Batubara has a brown field coal mine with coal reserve of 7m tonnes (JORC reserve) and coal resources of 109m tonnes (JORC resources). Santan Batubara has just resumed its coal production in 2H18.
♦ We are positive with the acquisition as we think it enable Harum Energy to keep ramping up its coal production. We maintain our Buy call on Harum Energy with TP: IDR3,400.
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