Bank Allo, Formerly Bank Harda, Owned By Conglomerate Chairul Tanjung Plans To Rights Issue Of 11 Billion Shares, How Much Is It Worth?

Chairul Tanjung conglomerate. (Photo: Doc. Forbes)

JAKARTA - PT Allo Bank Indonesia Tbk will take corporate action. This issuer of banking stock coded BBHI plans to increase capital with preemptive rights (PMHETD) or rights issue.

In an information disclosure on the Indonesia Stock Exchange (IDX) website, quoted on Thursday, September 9, the bank owned by the conglomerate Chairul Tanjung will issue a maximum of 11 billion shares with a nominal value of IDR 100 per share in this rights issue.

"The number of shares is equivalent to 94 percent of the company's issued and fully paid capital", wrote Bank Allo's management.

The exercise price will be determined later in the PMHMETD prospectus by showing the applicable rules and regulations. PT Mega Corpora as the controlling shareholder of the company has the option to transfer part or all of the rights in this rights issue to investors.

The POJK stipulates that if after the takeover the company takes a corporate action that results in the fulfillment of community ownership of at least 20 percent, then the obligation to transfer the shares is controlled as a result of the Mandatory Tender Offer so that ownership exceeds 80 percent does not apply.

Shareholders who do not exercise their Pre-emptive Rights will be subject to dilution of ownership of a maximum of 48.49 percent of the percentage of share ownership in the company. This dilution refers to the assumption that the Preemptive Rights of PT Mega Corpora can be partly taken by strategic investors and partly exercised by PT Mega Corpora, and all public shareholders take part of the Preemptive Rights to which they are entitled, either through the exercise of Preemptive Rights or additional share subscriptions if there are remaining shares in the public portion.

For information, Bank Allo, previously known as Bank Harda Internasional, posted a profit of IDR 22.9 billion in the first half of 2021. Based on an interim report submitted to the Indonesia Stock Exchange (IDX), this profit was cut by 30.31 percent from the same period last year, which is valued at IDR 32.86 billion.

However, Bank Allo posted a fairly good increase in operational performance because net interest income or net interest income (NII) rose quite significantly by 80.76 percent on an annual basis, from IDR 29.58 billion to IDR 53.47 billion.