Delta Dunia look on US$550 million loans

PT Delta Dunia Property Tbk seeks external loans including that of from bank worth up to US$550 million to fund the acquisition 99.99 percent shares of PT Bukit Makmur Mandiri Utama (Buma).
Management of Delta Dunia stated the company jointly with Edy Suwarno have signed conditional shares sale and purchase agreement (CSPA) with PT Bukitmakmur Widya and Johan Lensa dealing with the 99.99 percent Buma stocks acquisition.
Management said the transaction value based on the CSPA is worth US$239.99 million. The transaction is categorized material transaction as it exceeds 10 percent revenue and 20 percent equity of the company. The acquisition will be fully funded by the the debt or leveraged buyout.
"The funding resource of the takeover comes from the bank loan and or other third party funding resource," said the management of Delta Dunia in its prospectus last week.
The company will seek up to US$550 million funding which will be allotted to pay the overall acquisition value and Buma bank debt refinancing worth up to US$310 million.
The acquisition is done to increase the corporate proceeds and grow the overall business activities.