PT Bakrie & Brothers Tbk is going to conduct rights issue and seek loans to raise IDR45 trillion in fresh funds in a bid to acquire three internal strategic companies in the property, energy, and mining sectors.
Some foreign investment bankers revealed the rights issue was estimated to be completed by the end of June 2007.
Bakrie & Brothers may combine the rights issue with loan, but the portion is still being calculated. The maximum ratio is one to one or probably 60% rights issue and 40% loans.
According to information in the market yesterday, the rights issue price of Bakrie & Brothers's stock was around IDR250. The plan was submitted to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) yesterday.
Bakrie & Brothers is going to buy 40% stakes in the three companies at below market prices. If the internal acquisition is realized, Bakrie & Brothers's rights issue will be the largest in Indonesia's capital market in the past five years.
The largest rights issues last year were the ones made by PT Barito Pacific Tbk, which was able to raise IDR9.26 trillion and by PT BNI Tbk, which was able to generate IDR8.1 trillion.
After the rights issue, Bakrie & Brothers-which has been a holding company of business units with interests in the telecommunication, plantation, and infrastructure businesses-will become a private equity investment.
In doing the corporate action, Bakrie & Brothers will be helped by financial advisor Danatama Makmur and Morgan Stanley. Investment banks that will help seeking the IDR45 trillion funds are Danatama, Barclays Capital, Morgan Stanley, Credit Suisse, and CLSA.
Tuesday, January 8, 2008
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