Bakrie Plantations will raise IDR 4.97 trillion from rights issue

PT Bakrie Sumatera Plantations Tbk,Indonesia's fifth-largest palm oil producer by value, plans to raise IDR 4.97 trillion in a rights offer to fund expansion. Bakrie Plantations intends to sell 9.47 billion new shares at 525 rupiah each to shareholders on 28 January.

Investors have the right to buy five additional shares for every two shares held. Bakrie Plantations will invest 2.2 trillion rupiah of the proceeds to buy five oleochemical and palm oil makers and to help them expand, the statement said. The acquisitions include PT Domas Agrointi Prima and PT Domas Sawitinti Perdana.

About 960 billion rupiah will be invested in three other plantation companies, while the rest of the proceeds will be used to expand upstream businesses and for working capital.

For every 15 new shares purchased in the rights offer, investors will get one warrant which gives them rights to buy another share at 530 rupiah each in August 2010 through January
2013. Bakrie Plantations said the proceeds from the warrants sale will be used for working capital. The company plans to meet shareholders on Jan. 18 to seek approval for the plan.