Waskita Karya Hopes That The Presidential Regulation On State Equity Participation Can Be Issued By The End Of November, After Which The Effective Rights Issue Permit From The OJK Will Be Issued

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Waskita Karya (Persero) Tbk, as a construction State-owned Enterprises (BUMN), hopes that the Presidential Regulation (PP) on State Equity Participation (PMN) can be issued by the end of November 2021.

"The issuance of PP PMN is expected to take place at the end of November 2021. After PP PMN is published, the Financial Services Authorization (OJK)'s effective statement on the rights issue of Waskita shares will follow," said Director of Finance and Risk Management of the Company, Taufik Hendra Kusuma in a written statement quoted from Antara, Monday, November 15.

Regarding the price of the rights issue, continued Taufik, the SOE Minister will determine after receiving a proposal from the SOE Ministry's Privatization Team and the Joint Lead Arranger (JLA).

"Currently we are in intensive discussion with the Ministry of SOEs and JLA regarding the proposed price for the implementation of the rights issue," said Taufik.

The series of rights issue corporate actions can be completed before the close of this year. Furthermore, in 2022, the company will focus on project completion and increasing the value of new contracts.

Meanwhile, Waskita's SVP Corporate Secretary Ratna Ningrum said, from the results of the non-deal roadshow conducted, the price range for the rights issue is likely to refer to a combination of historical prices and analyst consensus on Waskita's target price.

"With the latest developments, it is unlikely that the price fixing according to the Disclosure of Information that has been submitted to the stock exchange will be carried out," said Ratna.

Waskita has received a government support combo package in running eight Waskita financial recovery streams.

The company has obtained a government guarantee for a syndicated working capital facility and in the near future, the government is also conducting harmonization of the Draft Presidential Regulation (RPP) on State Equity Participation (PMN) granted to the company.

In addition, Waskita has also signed a Memerandum of Understanding (MOU) with Amoco Construction Group for construction projects in South Sudan.

This project is one of the potential projects that will be under construction by the company, and involves the G2G relationship between the Government of Indonesia and the Government of South Sudan.

In addition to the South Sudan project, the Company has also signed an MoU with Binladin Contracting Group - UAE in the context of a construction cooperation plan in the United Arab Emirates and other countries.