Get Government Support, Waskita Karya Will Rights Issue Early December 2022

JAKARTA - Receiving support from the government, PT Waskita Karya (Persero) Tbk (WSKT) will carry out a rights issue in early December 2022. This was done after the company succeeded in implementing 8 financial restructuring streams since 2021, until finally the government will provide a State Capital Participation (PMN) again of IDR 3 trillion for the completion of several toll roads.

"This trust given is the Government's full support for Waskita in supporting the Government's program in accelerating national infrastructure development," said President Director of PT Waskita Karya Destiawan Soewardjono, in a written statement, Tuesday, November 22.

Destiawan stated that Waskita will continue to focus on improving financial and operational performance by carrying out corporate actions. One of them is the acceptance of PMN and the implementation of the rights issue 2022. The target for obtaining funds from the government and the public is IDR 3.98 trillion.

"This weights issue is an effort to increase capital through market corporate actions by maintaining Waskita's capital. After receiving additional capital through PMN, Waskita's rights issue is also a step so that the portion of public shares is not reduced by 23 percent," he said.

According to Destiawan, this is a good opportunity for existing public portion shareholders to participate in Waskita's rights issue, because the majority of the government as the majority shareholder is confident in the company's performance and fully supports Waskita by increasing capital by IDR 3 trillion.

The price for the implementation of the rights issue will be set by the Minister of SOEs after receiving a proposal from the State-Owned Enterprises (BUMN) Ministry and Joint Lead Arranger (JLA). Currently Waskita is in intensive discussion with the Ministry of SOEs and JLA regarding the proposed price for the implementation of the rights issue.

"The series of rights issue implementations can be completed before the close of 2022. Furthermore, in 2023, the company will focus on completing toll projects, accelerating other national strategic projects such as IKN projects and increasing the value of new contracts," concluded Destiawan.

The Company's SVP Corporate Secretary, Novianto Ari Nugroho added that until October 2022 Waskita had succeeded in obtaining a New Contract Value (NKB) with a total of IDR 13.38 trillion. This achievement increased by 10.64 percent YoY (year on year) compared to the same period or in 2021 of IDR 12.09 trillion.

"Several projects with the largest contribution until October 2022 are still dominated by IKN projects, such as the Presidential Secretariat Building and supporting buildings in the Presidential Palace area, the IKN Toll Road for the Simpang Tempadung-Basic Island Bridge, the construction of the IKN Work Road/Logistic IKN Package for the construction of the Sepaku Segment 4 Ring Road with a total contract value of Rp. 2.55 trillion. Apart from IKN, there is the construction of the SPAM Regional Umbulan network for East Java Province worth Rp. 115 billion," explained Novianto.