Bumi Resources Minerals proposes price increase in upcoming private placement
JAKARTA - PT Bumi Resources Minerals Tbk (BRMS) has proposed a higher share issuance price in its upcoming private placement from Rp 50 per share to Rp 84. The proposal has been submitted to the Indonesian Stock Exchange (IDX) and the Financial Services Authority (OJK) through a stock exchange filing.
In the corporate action, the company will issue 8,685,302,932 new Series B shares. All of the new shares will be subscribed by Wexler Capital Pte Ltd, one of BRMS's creditors, under a debt-to-equity swap scheme to repay a US$52 million loan from Wexler.
"We are happy with the proposed higher share issuance price of Rp 84 in this private placement plan for the following reasons: First, the higher share price will add more value to [our] shareholders' interest," BRMS Director Herwin Hidayat said in an official statement received by IDNFinancials.com, Monday (22/6).
"Second, after the completion of the private placement and the debt-to-equity swap transactions our company's liquidity and debt-to-equity ratio will improve from previously 0.2x to 0.1x. Third, with the proposed higher share issuance price and less number of new shares issued, minority shareholders' shares in BRMS [will only be] diluted by 1.5%."
BRMS, Mr Hidayat said, expects the company's reduced debt will improve its liquidity and provide an opportunity to optimise its capital structure. The company plans to seek shareholders' approval to launch the corporate action at an EGM on Wednesday (24/6) this week. (MS)