Launching a rights issue, GSMF’s idle shareholders would have their portions diluted by 50%
JAKARTA – The shareholders of PT Equity Development Investment Tbk (GSMF) would have their portions diluted by 50% should they refuse to take part in the upcoming rights issue two weeks in the future (14-20/12). In the said plan, GSMF seeks IDR 1.23 trillion of fresh funds to fund the working capital and raise the core capital of PT Bank Ganesha Tbk (BGTG).
In the prospectus quoted Tuesday (30/11), GSMF’s shares are reported to reach 7,454,723,337 units, 67.76% of which are controlled by Equity Global International Limited (EGI). Then, PT Polychem Indonesia Tbk (ADMG) claims another 8.8%, while public investors share the remaining 23.44% (each below 5%).
EGI is reported to exercise its rights over 5,051,396,464 shares of IDR 16 each, totalling IDR 933.48 billion. EGI would also act as the standby buyer should other shareholders choose not to claim their portions of 1,615,270,203 shares worth IDR 266.51 billion in total.
Accordingly, IDR 1 trillion of the proceeds of this corporate action would be used to raise the core capital of PT Bank Ganesha Tbk (BGTG). Then, another 4.5% would be utilised as additional investments in PT Equity Life Indonesia (ELI), while 1% of the proceeds would be channelled to the working capital of PT Equity Finance Indonesia (EFI). The remaining portion would be saved as the company’s working capital. (LK/ZH)