JAKARTA. PT Solusi Bangun Indonesia Tbk (SMCB) will launch a rights issue following Taiheiyo Cement Corp's (TCC) plan to acquire a 15% stake in the company for US$220 billion.
In a stock exchange filing, SMCB said it had signed a memorandum of understanding (MoU) regarding the plan with TCC and PT Semen Indonesia (Persero) Tbk (SMGR) as SMCB's majority owner on April 21, 2020.
The MoU includes deals on investment and strategic partnership between the companies, TCC's upcoming investment in SMCB, export to TCC, and further partnership plans.
According to TCC, the Japanese cement manufacturer plans to acquire a 15% stake in SMCB via rights issue.
According to SMCB Director Agung Wiharto, the company will launch the corporate action with TCC as the standby buyer. "The amount of shares issued is 15% of SMCB's shares," Mr Wiharto told IDNFinancials.com, Thursday (24/4).
Furthermore, Mr Wiharto explained that proceeds from the rights issue will be used to strengthen the company's working capital and increase the capacity of its ports.
The company will seek approval for the corporate action in an EGM, with the process expected to be completed before the end of the year. (AM/MS)