Chandra Asri, Company Owned By Prajogo Pangestu Conglomerate This Rights Issue Will Seek Rp72 Trillion Funds To Build Factory

JAKARTA - PT Chandra Asri Petrochemichal Tbk will hold an Annual General Meeting of Shareholders (AGMS) in the near future. At the AGMS, one of the agendas of the company coded as TPIA shares was the continuation of the company's plan to increase its capital through the Pre-emptive Rights (HMETD) scheme or rights issue.

Quoted from the disclosure of information on the Indonesia Stock Exchange (IDX) website, Wednesday, March 24, discussion of the rights issue is included in the company's sixth agenda. As for the issuance of new shares of the company owned by conglomerate Prajogo Pangestu, there will be a maximum of 7,166,479,740 new shares with a nominal value of Rp200 per share.

"Approval of the company's plan to increase the company's capital by granting pre-emptive rights (HMETD) to the company's shareholders through the Limited Public Offering III mechanism," wrote management Chandra Asri in the plan for the General Meeting of Shareholders to be held April 15, 2021.

It was explained, since the shareholder's approval was obtained at the EGMS in February 2020, Chandra Asri has not submitted a registration statement to the OJK regarding additional capital by granting HMETD. The reason is, no effective statement from the OJK has been obtained regarding the additional capital within 12 months after the date of the 2020 EGMS.

"In accordance with Article 8 paragraph (3) of OJK Regulation No. 32 / POJK.04 / 2015 concerning Increase of Capital for Public Companies by Providing Pre-emptive Rights as amended by OJK Regulation No. 14 / POJK.04 / 2019 concerning Amendments to Regulations OJK No. 32 / POJK.04 / 2015 concerning Increase in Capital for Public Companies by Providing Pre-emptive Rights (POJK No. 14/2019), the company wants to ask for the approval of the company's shareholders to make the additional capital, "wrote Chandra's management. Beautiful.

The management of the number 3 richest person in Indonesia further explained that the funds obtained from the Limited Public Offering III, after deducting the costs and costs of issuing shares, will all be used for capital expenditures to increase the production capacity of the company and / or its subsidiaries in the future. will come.

Referring to Chandra Asri's share price at the close of trading today, Wednesday, March 24, TPIA's share price was at the level of Rp10,525. If calculated, the potential funds Chandra Asri will get from this rights issue is IDR75.43 trillion.

It is known that Chandra Asri is in need of an investment of US $ 5 billion or around Rp72 trillion to build a second factory in Cilegon. So, the rights issue proceeds will be sufficient for TPIA's new factory investment.

For information, referring to TPIA shareholder data as of March 4, 2021, PT Barito Pacific Tbk (BRPT) holds 41.88 percent ownership. SCG Chemicals Company Limited held 30.57 percent, Prajogo Pangestu 15.05 percent. Meanwhile, the share of ownership under 10 percent is held by Marigold Resources Pte Ltd 4.75 percent, and the public is 7.75 percent.