Looking For Money To Pay Debt, Company Owned By The Conglomerate TP Rachmat Seeks IDR 720 Billion In Funds Through Bond Issuance

Anteraja logistics truck. (Photo: Doc. Adi Sarana Fleet)

JAKARTA - Transportation and logistics service company, PT Adi Sarana Armada Tbk plans to issue convertible bonds through additional capital with Pre-emptive Rights (HMETD) or rights issue which is in the process of submitting effective approval from OJK.

The plan is for each holder of 453 old shares registered on June 14, 2021, to be entitled to 80 new HMETD, in which each Rights issue entitles the holder to purchase one convertible bond at the exercise price IDR 1,200 per share.

These convertible bonds will be convertible before the maturity date on June 25, 2023 or for a period of two years. The number of convertible bonds offered by the company owned by conglomerate TP Rachmat is 600 million and is zero coupon and issued scripless.

ASSA President Director Prodjo Sunarjanto revealed that ASSA plans to issue convertible bonds using financial reports as of December 31, 2020. Most of the funds collected or around 90.38 percent will be used to pay off and pay off part of the bank loans we take in 2019 in the context of the initial investment in the courier business (Anteraja).

"Then the acquisition of JBA in the automotive auction business. About 7.01 percent of the target funds will be used to increase working capital, and the remaining 2.62 percent will be used as a deposit for capital to develop new businesses in the warehousing services sector (Titipaja)", said Prodjo, in a written statement received on Wednesday, April 28.

Just so you know, Titipaja is a warehouse rental business (sharing warehouse) which in the world of logistics is known as the e-fulfillment center. Its customers are sellers of goods (sellers) on e-commerce platforms, social commerce, and consumer goods companies, which are currently changing their landscape and are starting to distribute some of their products directly to end-customers using Anteraja's delivery services.

Through this corporate action, the company hopes to raise IDR720 billion in funds. As for convertible bonds that are not taken by the company's shareholders, it will be taken by IFC (International Finance Corporation), which is a member of the World Bank Group.

In this case, IFC acts as a standby buyer in the exercise of the Preemptive Rights. For shareholders who do not exercise their rights, their share ownership will be diluted to a maximum of 15.01 percent after the PMHMETD period.

If the convertible bondholder does not want to exchange it into shares on the maturity date, ASSA will pay the Principal Value of the Convertible Bonds plus the Yield to Maturity of 3.5 percent per year, plus 1 percent of the Principal Value of the Convertible Bonds at the maturity date.

"We hope that if the plan to increase capital through convertible bonds in this rights issue goes well, ASSA's business will continue to grow and continue to realize our strategy towards Sharing Economy and Tech-Based Business as a continuation of our initiatives in previous years. We will also continue to prioritize environmental, social and governance (ESG) aspects in all operational activities, one of which is by encouraging the use of green energy in all of our business pillars", concluded Prodjo.