Moya Asia

Moya Asia: lifts halt at 8.30am today. The group had previous announced potential financing from IFC for the BOT project in Tangerang City Area, Indonesia. Moya Asia has entered into a loan agreement with IFC to for project financing amounting to 229b Rp (S$29m). An additional loan amount of 522b Rp (S$67m) will be provided by two or more other lenders. Also, the IFC has a subscription agreement to subscribe for new shares in Moya Asia’s Indonesian subsidiary, PTMI, representing 12.5% of the enlarged share base, for approx 30.9b Rp (S$4m). This comes with a 5-yr put option in favor of IFC, requiring Moya Asia to purchase from IFC all of the shares in PTMI at a put option price to be determined at either the higher of i) 7x EBITDA incl cash but less financial debt of PTMI, or ii) the price determined by an independent appraiser. The put option is exercisable by IFC in certain events, eg. failure of any of the companies within the group, failure to perform certain obligations under the sh/h agreement, etc. Mgt believes the IFC subscriptions will assist the group in not only obtaining a guaranteed source of funding for the next few yrs to meet PTMI’s construction obligations in relation to the BOT project, but will also increase the credibility of the group by having IFC as a shareholder in the group. Moya, which made a loss last year, trades at 5.9x fwd P/E.