Bakrieland cut rights issue target

PT Bakrieland Development Tbk, the property developer unit of Bakrie Group, cut off the target of rights issue worth IDR2.2 trillion. The rights issue target is cut off into IDR3.2 trillion as from IDR5.4 trillion.

The company could reduce acquisition cost of PT Sentul City Tbk worth IDR1.3 trillion. The company could also cut IDR500 billion due to its successful cooperation with strategic partner for operational cooperation in the Bogor Nirwana Residence project.
Besides, with the incoming PT Jasa Sarana as the strategic partner of Ciawi-Sukabumi toll road project, the cost could be cut down up to IDR400 billion.

The reason for cutting down the target here is that the shareholders do not want to have too much dilution.
Based on rights issue prospectus of Bakrieland May 21, 2010, the 33.93 billion rights issue is potentially to dilute 63.01 percent shares ownership. It does not calculate the execution of 6.98 billion warrants issued and freely given to the shareholders.
Bakrieland shareholders as mentioned in the finance report March 31, 2010 include CGMI 1 Client Segregated Secs with 30.82 percent possession, PT Bakrie & Brothers Tbk (9.13 percent), and public 60.05 percent.

Meanwhile, PT Sentul City Tbk will disburse IDR327.5 billion shares to acquire 260 million shares issued by PT Bukit Jonggol Asri. Sentul City, in this transaction will own 49 percent shares of Bukit Jonggol.
Major ownership from Bukit Jonggol or 51 percent will be possessed by Bakrieland disbursing IDR1.92 trillion funds to acquire 1.28 billion rights issue with a par value of IDR1,500.