PTPP Finalized Prima Jasa Acquisition Process

PT Pembangunan Perumahan (PTPP IJ, Under Review) has finalized the IDR44bn acquisition of Prima Jasa Aldodua (PJA), a heavy equipment rental company. According to management, the acquisition was made to reduce dependency on third party heavy equipment rental. On the other hand, until 1H14 PTPP has booked IDR8.4trn of new contracts (-11.5% y-o-y) or 35% from management’s FY14F target of IDR24trn. Management also plans to spin-off the company’s property division, PP Properti, in 2015 by issuing 30% of its shares to the public. However, this corporate action is still in discussion.