Friday, April 20, 2018 09:39 WIB

Premier Insight : MYOH, Samtan Co Ltd sold 59% ownership in Samindo Resources to its own Indonesian based subsidiary, Tristan Resources.

Samtan Co Ltd sold 59% ownership in Samindo Resources (MYOH IJ; Rp795; Not Rated) to its own Indonesian based subsidiary, Tristan Resources. Samtan remains holding 4.54% ownership in MYOH. The total of 100mn shares were sold at Rp800 per share. MYOH plans to expand in power sector and coal mining. The company allocates US$25mn capex in electricity sector and US$100mn for coal mining acquisition. (Kontan).

Comment: We believe restructuring of ownership in MYOH to Indonesian based entities is conducted to minimize regulatory risks regarding foreign ownership in Indonesian mines as MYOH plans to expand to coal mining business. We also note that in past four years MYOH delivered dividend on May with dividend payout ratio of more than 80%. We expect MYOH to deliver potential dividend yield of 7.4% with dividend payout ratio estimate of 80% and FY17 EPS of Rp74.