Company Owned By Toll Road Conglomerate King Jusuf Hamka EGMS Today, Want To Issue IDR 4 Trillion Rights?

Jusuf Hamka. (Photo: Doc. Antara)

JAKARTA - The company owned by the toll road magnate Jusuf Hamka, PT Citra Marga Nusaphala Persada Tbk (CMNP) is preparing to welcome the economic recovery this year. This is illustrated by CMNP's plan to take action to increase capital through a rights issue.

The Company will seek approval from the shareholders at the Extraordinary General Meeting of Shareholders (EGMS) today, Thursday 17 February. In the disclosure of information, it is stated that CMNP will issue a maximum of 2,322,846,365 (2.32 billion) shares.

"Shareholders who do not take their rights will experience a 25 percent dilution," the management wrote.

Currently CMNP shareholders consist of Paribas Wealth Management (58.98 percent), Mohammad Jusuf Hamka (6.02 percent), the community (35 percent), Jusuf Hamka's children and wife with details of their daughter Fitria Jusuf (4.42 percent), Feisal Hamka (4.97 percent) and his wife Lena T Burhanudin (4.56 percent). There is not enough information behind Paribas, however, the direct ownership of the Hamka family is close to 20 percent.

CMNP was originally a company controlled by Siti Hardiyanti Rukmana alias Tutut, the first daughter of President Suharto. The company initially managed the 19.03 kilometer Cawang-Tanjung Priok toll road.

Furthermore, the Tanjung Priok-Jembatan Tiga toll road is 13.93 kilometers long. These two toll roads are known as the Ir. Wiyoto Wiyono, worked on 1988-1990.

Referring to today's trading closing data, Wednesday, February 16, investors transacted CMNP shares at a dowry of IDR 2,010 per share. Assuming the exercise price is not far from that price level, there is a possibility that the rights issue will be able to generate fresh funds of above Rp4 trillion.

The proceeds from the rights issue will be used by CMNP to finance two toll construction projects. Each of them is the completion project of the Cileunyi-Sumedang-Dawuan (Cisumdawu) Toll Road and the development of the Ir. Wiyoto-Wiyono MSc.

CMNP's decision to launch a rights issue is not surprising. Considering that the company's cash condition is not sufficient for large-scale construction purposes.

As revenues and profits improved due to the relaxation of the PPKM, the company was actually able to record net cash gains from operating activities of Rp553.82 billion. Turning from the number of IDR 2.22 trillion year-on-year (yoy) as of the end of September 2021.

However, the jumbo spending of up to Rp3.01 trillion for payment of long-term bank debt last year made the company's fresh funds relatively thin. As of the end of September 2021, CMNP only has cash and cash equivalents at the end of the period of Rp. 913.37 billion, aka a decline from the position of Rp. 2.8 trillion yoy.

Previously, in a public presentation at the end of December 2021, CMNP's Independent Director Hasyim had stated that in 2022 his company would require capital expenditure or capital expenditure (capex) of IDR 11 trillion. Of this ceiling, more than 76 percent or around Rp. 8.4 trillion of which will be used for the continuation of the Cisumdawu Toll Road.

As of the end of the third quarter of 2021, the company divides its main operating segments into 4 segments (excluding other segments). Each of the major revenue pockets is the Jakarta inner ring segment (JIUT), the Waru-Juanda interchange segment, the Soreang Pasir Koja toll road segment, and the Depok-Antasari toll road segment.

During the early 9 months of 2021, of the four segments, only the Depok-Antasari segment still recorded contractions. The remaining three other main sources of income have started to show signs of recovery in line with the easing of the PPKM.

In total, CMNP's revenue for the first 9 months of 2021 reached Rp1.92 trillion. Growing 13.55 percent from the position of IDR 1.69 trillion yoy

Meanwhile, in terms of net income attributable to the parent entity, CMNP posted a report card of Rp. 487.77 billion or grew 26.5 percent from the position of Rp. 385.58 billion.