Gallant Venture/ PT Indomobil

Gallant Venture/ PT Indomobil: After the completion of acquisition of 52.35% shares of PT Indomobil (IMAS) at Rp5420/share, Gallant is required to undertake a mandatory tender offer for all outstanding Indomobil shares that are not held by Gallant; representing 29.6% shares (public shares). The remaining 18.05% owned by PT Tritunggal Intipermata (a member of Salim Group) will not participate in the mandatory tender offer. The mandatory tender offer price is set at Rp5,426/ share, starts on 25 Jun 2013 and ends on 24 Jul 2013. IMAS' Nissan volume in May was 5,910 units, or up 6% y/y (+76% m/m) coming from a low base in April, when the production in its Purwakarta factory was disrupted by strike for more than a week. 5M13 volume was down 9% y/y to 25,908 units, or came in below CS estimate (37% of its FY13E). 5M13 market share was 5.2% (down from 6.6% last year). As Nissan will launch its LCGC only by 1Q14E, Astra should be the only auto player to produce it by 2H13E. Therefore, CS expect Nissan’s FY13 market share to decline. CS has an UNDERPERFORM rating on IMAS with a TP of Rp4800.