A Company Owned By Conglomerate Hary Tanoesoedibjo Wants A Rights Issue, Seeking Big Funds To Become A Digital Bank?

Conglomerate Hary Tanoesoedibjo. (Photo: Doc. Antara)

JAKARTA - PT Bank MNC Internasional Tbk will increase capital with a pre-emptive rights scheme (PMHMETD) or a rights issue. This was done in order to transform into a digital bank.

The rights issue will release a maximum of 14.23 billion new shares. The issuance of the new shares is series B shares with a nominal value of Rp50 per share or a maximum of 33.33 percent of the paid-up capital after the rights issue.

As reported from the information disclosure page of the Indonesia Stock Exchange, Sunday, May 9, this bank belonging to conglomerate Hary Tanoesoedibjo concluded that this corporate action would provide various benefits for the bank's performance. First, improving the company's capital structure.

Then the number of outstanding shares of the company will increase, thereby increasing the liquidity of the company's stock trading. In addition, MNC Bank can invite strategic investors who are interested in investing their capital in the company in order to provide added value to the performance of the company which was formerly known as Bank Bumiputera.

The rights issue will make the capital structure stronger, increase the company's working capital, and can support MNC Bank in terms of credit expansion, and support the transformation into a digital bank. Including the development of the digital banking application "Motion" by integrating the application with the Company's credit card and SPIN (digital payment platform from MNC Group).

In addition, Bank MNC International will also hold additional capital with No Pre-emptive Rights (PMTHMETD) or private placement, the company will issue a maximum of 2.53 billion series B shares with a nominal value of Rp50.

The number of shares issued reaches 10 percent of all fully paid shares in the company. The amount of funds collected from this private placement is around Rp126.5 billion. 

The company considers that this PMTHMETD will provide a number of benefits to the company, including improving the capital structure. In addition, the number of outstanding shares will increase, which will increase the company's stock trading liquidity.

From corporate action, according to management, the company can also invite strategic investors who are interested in investing their capital in the company in order to provide added value to the company's performance.

The proceeds from this private placement will also be used entirely to strengthen the capital structure, working capital, and credit expansion. In addition, the funds will also be used to support the company's transformation into a digital bank.

"In connection with the PMTHMETD implementation plan, the company does not have any information regarding prospective investors who will implement the PMTHMETD. All new shares of the company will be offered to all shareholders and the public," explained the statement from the management of Bank MNC.

The rights issue and private placement will be carried out after the company obtains approval from the EGMS which will be held on June 9, 2021. This additional capital is also pending an effective statement from the OJK.