Bakrieland studies on IDR1 trillion convertible bonds

PT Bakrieland Development Tbk studies an option for mandatory convertible bond (MCB) issuance to absorb IDR1 trillion deposit fund from the Avenue Luxembourg SARL.
The ownership of PT Bakrie & Brothers Tbk (BNBR) in Bakrieland subsidiary company is predicted to sharply plunge into 4.06 percent after the 15.31 percent divestment to Avenue Luxembourg SARL this week.
Referring to the periodical shareholding report as per September 29, 2008, by the securities administration, PT EDI Indonesia, BNBR had 19.37 percent of Bakrieland shares.
But the divestment of 15.31 percent of Bakrieland shares, the share possession now remains 4.06 percent.
President director of Bakrieland Hiramsyah Sambudhy Thaib said the company needs rights issue for the MCB option.
He ensured the company will finalize the option next week due to the required approval from the general meeting of shareholders.
Avenue increased its share possession in Bakrieland into a total of 30.76 percent as from 15.45 percent. The crossing of Bakrieland shares have done yesterday before.
"The IDR1 trillion fund actually is our demand to the ultimate shareholders, Avenue and BNBR. Avenue has already agreed the IDR1 trillion. But if BNBR later will inject fund then the deposit from the Avenue will be reduced."