Uncertainties removed
Price Target : 12-month S$ 2.00 (Prev S$1.55)
By: Singapore Research Team +65 6533 9688
Story: First Resources has lodged an announcement with SGX today regarding
Indonesian news media reports on a press conference held by the Indonesian
Corruption Eradiation Commission (KPK) last night. In the press conference,
KPK was reported to have announced that the financial penalty of
approximately US$38.2 million to Mr. Martias in a separate corruption case,
had been fully paid; and that KPK would withdraw its intention to auction
off 19 properties (three of which belonging to First Resources) that it had
deemed to be belonging to or related to Martias.
Point: In a conference call today, Mr. Ciliandra Fangiono, First Resources
CEO, stated that there was no financial assistance given to Mr. Martias in
regards to the settlement and that as far as the Supreme Court judgment and
penalties go, "all the boxes have been ticked". An official announcement of
the KPK is expected to be published in Indonesian newspapers by tomorrow.
Relevance: Given this announcement, we believe uncertainties on the stock
have been removed. We have therefore upgraded our recommendation on the
stock to Buy from Hold and reinstated our target price to S$2.00 from
S$1.55.
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