JAKARTA - PT BRI Agroniaga Tbk (AGRO) will conduct its IX rights issue by issuing 3 billion new shares on 6 September 2019. The company's majority shareholder, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) will not participate in this corporate action.
Based on the company's prospectus issued on 17 July 2019, the company announced that shareholders who chose not to participate in the rights issue would have its shares diluted by 12.32%. The new shares from the private placement will be distributed electronically and will be collectively administered to PT KSEI.
The funds from the rights issue will be used to strengthen the company's expansion. By 31 March 2019, BRI Agro had disbursed Rp.16.30 trillion worth of loans, while also received Rp 17.7 trillion in third party funds. (LK/AR)