<article>Bank Jatim has allocated Rp1.2 billion to purchase shares that have been issued and listed in <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=idx" target="_blank">Indonesian Stock Exchange (IDX)</a>. The buyback will be conducted gradually from February 1, 2017 until June 1, 2017.</article>

Bank Jatim has allocated Rp1.2 billion to purchase shares that have been issued and listed in <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=idx" target="_blank">Indonesian Stock Exchange (IDX)</a>. The buyback will be conducted gradually from February 1, 2017 until June 1, 2017.
In other deals, telco firm Centratama Telekomunikasi Indonesia is selling up to 20.78 billion new shares in a rights offering, while Bank Central Asia (BCA) has agreed to inject Rp 500 billion ($37.2 million) in loans into Profesional Telekomunikasi Indonesia (Protelindo), a unit of Sarana Menara Nusantara.
<h3 style="text-align: justify;">Bank Jatim’s shares buyback</h3>
The East Java-based bank has appointed <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Bahana+Securities" target="_blank">Bahana Securities</a> to conduct the buyback, which will be carried out during the four months between January and June 2017, the company said in a filing.
It will fund the buyback from the retained earnings of undetermined usage per September 30, 2016, which were recorded at Rp 836 billion. Price of the purchase will be lower or equal to the closing price in the previous trading.
“The company believes that the buyback is not going to give material negative impacts to business… (the transaction) is expected to encourage the prudent risk taking act, so that business continuity could be sustained and is going to improve the company’s performance in the future,” Bank Jatim said.
In the first quarter of 2016, the lender booked a 21.5 percent increase in net income to Rp 312.8 billion (US$23.8 million), while the total assets rose 7.25 percent to Rp 49.1 trillion. Amid low interest rates, the bank&#8217;s deposits dropped 9.77 percent.
The bank aims establish a sharia unit in 2017. It had originally planned to complete the spin-off by the end of 2016. The company said that the delay was due to some requirements are still “in the process” of fulfillment.
<h3 style="text-align: justify;">Centratama Telekomunikasi</h3>
Listed telco firm Centratama Telekomunikasi is offering 20.78 billion new shares, or 200 per cent of the enlarged capital, through a rights issue that will be completed in January 2017. The company is slated to receive Rp 2 trillion ($148.8 million) from the planned transaction.
Proceeds will be used to acquire 100 per cent shares in PT Network Quality Indonesia (Rp 105.5 billion) and settle its debts (Rp 1.9 trillion).
Started in 2006, NQI is an Indonesia-based company that provides supporting services and equipments of telecommunication. Centratama believes that acquiring NQI will strengthen the company’s core business, especially as an in-building solution and internet provider.
According to plan, the company will complete the transaction on January 19, 2017.
<h3 style="text-align: justify;">BCA &#8211; Sarana Menara Nusantara</h3>
Meanwhile, another telco firm, <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Protelindo" target="_blank">Protelindo</a>, has received Rp 500 billion ($37.2 million) from Bank Central Asia (BCA) in the form of revolving loan facility. The loan consists of two parts: part A is time loan revolving facility, which will mature in three years, while part B is uncommitted money market line facility, which will mature in 12 months.
“The company hopes that Protelindo will improve its financial performance as it gets an alternative funding with lenient requirements,” parent company Sarana Menara Nusantara said in a statement.
Protelindo operates more than 9,000 towers and 17,605 leasable sites on these towers. Its biggest client is Hutchinson 3 Indonesia, operator of the cellular network known as “3.” Telkomsel Indonesia and XL Axiata are also among its biggest clients.
The company is owned by IDX-listed Sarana Menara Nusantara, a unit of the Djarum Group, which is also the controller of BCA.
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Indonesia Digest: Bank Jatim's buyback; Centratama’s rights issue; $37.2m loan for Protelindo

Indonesia Digest: Bank Jatim's buyback; Centratama’s rights issue; $37.2m loan for Protelindo

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Indonesia Digest: Bank Jatim's buyback; Centratama’s rights issue; $37.2m loan for Protelindo

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