JAKARTA. PT Bakrie Sumatera Plantations Tbk (UNSP) will conduct a private placement, with a target of raising IDR 241.93 billion. The corporate action is part of the company's plan to convert its debt into shares.
Bayu Irianto, President Director of UNSP, said that the company will issue a total of 806,441,200 shares, about 24.39% of the total outstanding shares. The nominal value of the new shares is set at IDR 100 per share, with an exercise price of IDR 300 per share.
The plan, said Irianto, is to use the funds from the private placement to restructure part of the company's debt to Poseidon Corporate Services Ltd (IDR 176.6 billion) and PT Mateo Sagraha Atlantis (IDR 65.33 billion).
Irianto admitted that the conversion of debt into shares, through this private placement, could reduce financial burdens and increase the company's chances of obtaining new funding. However, he also acknowledged that this decision could hurt existing shareholders, by diluting their ownership by 24.39%.
Furthermore, UNSP's management will ask for approval from its shareholders during its Extraordinary General Meeting of Shareholders (EGMS) on 23 December 2020. (KR/AR)