JAKARTA. PT Chandra Asri Petrochemical Tbk's (TPIA) plan to isssue 7.17 billion new shares through a rights issue has been approved by its shareholders.
According to TPIA Human Resources & Corporate Affairs Director Suryandi, the company has not set an implementation price for the rights issue. However, it will do so in accordance with regulations from the Financial Services Authority (OJK).
"In accordance with the regulations, we have 12 months [to decide]," Mr Suryandi told IDNFinancials.com after the company's EGM on Wednesday (5/2).
Proceeds from the corporate action, said Mr Suryandi, will be used as capital for TPIA and its subsidiaries, to increase the production capacity of petrochemical products, and to expand CAP 1 and CAP 2 plants.
Based on information received by IDNFinancials.com, TPIA shareholders who do not execute their rights in this corporate action will have their shares diluted by 29%.
TPIA's shareholders currently consist of PT Barito Pacific Tbk (BRPT) which owns 41.88%, SCG Chemicals 30.57%, Prajogo Pangestu 14.80%, Marigold Resources Pte Ltd 4.75%, and public investors 7.99%. (KR/MS)