Sinarmas Subsidiary Based In Singapore Owned By Conglomerate Eka Tjipta Widjaja Successfully Raises IDR 6.8 Trillion From Rights Issue

JAKARTA - The Sinarmas Group, through its subsidiary in Australia, owned by the late Eka Tjipta Widjaja conglomerate, Stanmore Resources Ltd., managed to earn AD 656 million (around IDR 6.8 trillion) through the issuance of new shares under the institutional entitlement offer scheme. This action is part of a fundraiser to finance the acquisition of 80 percent stake in BHP Mitsui Coal Pty Ltd (BMC).

A pro-rata entitlement offer or sometimes also called a rights issue is a new share offering, in which shareholders are entitled to purchase shares at a fixed price.

In this corporate action, Stanmore Resource offered new shares at a price of 1.10 Australian dollars at a ratio of 7 new shares for every 5 shares held by shareholders. The institutional shortfall bookbuilding period for the stock offering was carried out on March 3, 2022.

As a result, Stanmore pocketed about 656 million Australian dollars, equivalent to 94.6 percent of the total issuance target of the new share offering, which was 694 million Australian dollars or 506 million US dollars. Furthermore, the allotment period and trading of Stanmore's new shares on the Australian Exchange (ASX) is scheduled for March 17, 2022. Stanmore's management also appreciates the support of shareholders in this corporate action.

"The overwhelming support from existing shareholders and new investors is a real endorsement of the value proposition offered by the acquisition of BMC, Stanmore is excited to welcome several new investors," said Stanmore Managing Director Marcelo Matos in an official statement, quoted on Wednesday, March 9.

As previously announced, the acquisition value of 80 percent of BMC's shares reached 1.35 billion, approximately IDR 19.3 trillion (assuming an exchange rate of IDR 14.300 per US dollar). Apart from Stanmore Resources, its parent company, Golden Energy and Resources Ltd. (GEAR), which is listed on the Singapore Stock Exchange, is also seeking funding to annex BMC.

GEAR raises funds through a global bond issue of 90 million SA dollars. GEAR has set a final global bond coupon of 8.5 percent per year and will mature on May 14, 2026. This new global bond will be issued on March 9, 2022. “These notes will be consolidated with the company's senior notes issued on May 14, 2021. worth USD 285 million," wrote GEAR's management in an information disclosure on the Singapore Stock Exchange, Monday, March 9.

This note will be guaranteed unconditionally and irrevocably by Golden Investments (Australia) Pte Ltd (GIAPL). Proceeds from the issuance of bonds will be given to GIAPL as a form of payment for the purchase of new shares of GIAPL.

In the end, GIAPL will use the funds for the purpose of acquiring BMC shares. Meanwhile, other sources of funding for the acquisition of BMC will also come from the loan facility and Stanmo's internal cash.

Overall, GEAR's management expects the acquisition of BMC to be completed in mid-2022. This acquisition has been approved by the shareholders of GEAR's parent company, namely PT Dian Swastatica Sentosa Tbk (DSSA) on February 23, 2022.