UPDATE 1-Indonesia's Armadian Tritunggal plans Nov IPO

Fri Aug 14, 2009 2:45am EDT

* Proceeds to exceed $100 mln - underwriter

* Armadian Tritunggal owns majority stake in miner Berau

* Unclear what IPO plans mean for Berau stake sale (Adds quote, details)

JAKARTA, Aug 14 (Reuters) - Indonesian holding company PT Armadian Tritunggal, which owns 51 percent of the country's fifth-largest coal producer PT Berau Coal, plans to hold an IPO in November, the lead underwriter said on Friday.

"The size is still undecided, but (the proceeds) will be at least 1 trillion rupiah ($100 million). The timing is around November 2009," Eko Yuliantoro, an investment banking director at Bahana Securities said in a telephone text message to Reuters.

Armadian could not be immediately reached for comment, but local newspaper Investor Daily has quoted an Armadian director Handy Soetedjo as saying that the firm aims to strengthen capital structure through initial public offering and support expansion to produce up to 20 million tonnes of coal a year.

Armadian Tritunggal -- an investment firm controlled by Indonesian businessman Rizal Risjad -- was previously reported to be selling its 51 percent controlling stake in Berau.

The sale was being run by Deutsche Bank (DBKGn.DE), Bank of America's (BAC.N) Merrill Lynch, and former Merrill banker Sheldon Trainor's Pacbridge Capital Partners, according to sources familiar with the deal. [ID:nHKG137538].

It was not immediately clear what implications the IPO plans would have on the Berau stake sale.

The sale had generated strong interest as it is rare for controlling stakes in Indonesian energy firms to be put on the market, sources said.

China's Huaneng Power (0902.HK) and Indonesia's PT Indika Energy (INDY.JK) were among the firms that had submitted bids for the stake. [ID:nHKG201609]

Berau Coal -- which has 1,200 square km (460 sq mile) concession area in East Kalimantan province -- produced 13.2 million tonnes of coal in 2008 and aims for a 14.7 million tonnes output this year.

Dutch firm Rognar Holding B.V. owns 39 percent stake in Berau, while Japanese firm Sojitz Corp holds the remaining 10 percent stake. The sale by Armadian Tritunggal could also trigger the sale of stakes by the minority shareholders. ($1 = 9,925 rupiah) (Reporting by Tyagita Silka; Editing by Lincoln Feast)