JAKARTA - The Extraordinary General Meeting of Shareholders (EGMS) of PT Bank Rakyat Indonesia Tbk. (BRI) gave its blessing to the company to conduct a corporate rights issue through the mechanism of increasing capital by granting pre-emptive rights (HMETD) related to the plan to form an ultra-micro holding.
BRI President Director Sunarso said this action has the potential to become the largest rights issue in Indonesia, and could even become one of the largest in Asia.
According to Sunarso, this strategic step will support the agenda of exploring new sources of growth. Meanwhile, the ultra micro segment has been identified as a new source of growth through the formation of an ultra micro ecosystem.
"This ecosystem will provide integrated financial services for entrepreneurs of the ultra-micro segment so that the mechanism for upgrading to micro customers is more well-organized," he said in a virtual press conference after the EGMS, Thursday, July 22.
For information, the rights issue agenda is in line with the company's efforts to become the holding company for ultra micro businesses involving Pegadaian and PNM.
"By reaching the ultra-micro potential, the accessibility of financial services in this segment can be optimized," he said.
Furthermore, the BRI boss explained that the government as the controller of State-Owned Enterprises (BUMN) would deposit all of its Series B shares in Pegadaian and PNM to BRI or Inbreng.
After the transaction, BRI will own 99.99 percent of the shares of Pegadaian and PNM. In addition, the government will still have one Series A Dwiwarna share in Pegadaian and PNM.
“The company plans to issue a maximum of 28,677,086,000 Series B shares with a nominal value of Rp50. The number of shares and the exercise price will be announced later," added Sunarso.
Meanwhile, the proceeds from this corporate action will be used by BRI to smooth out the plan to form a holding and the rest will be used as working capital to develop the company's business ecosystem.
As a result of this corporate action, there will be changes in BRI's consolidated financial statements on March 31, 2021, namely total assets increasing from Rp1,411 trillion to Rp1,515 trillion, total liabilities increasing from Rp1,216 trillion to Rp1,289 trillion, and profit net increase from IDR 7 trillion to IDR 8 trillion.
“PNM will play a role in the empowerment phase, namely group loans distributed by PNM besides being valuable as financing, they also function in providing assistance and capacity building. Then in the integration phase, BRI and Pegadaian can help business actors in this segment with various pawn products and KUR (people's business loans)," he continued.
"Furthermore, in the last stage, which is the upgrading phase, ultra micro holding allows business actors to upgrade to commercial-based micro customers. The process will occur in one ecosystem so that it is more effective and efficient," Sunarso concluded.
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