Barito Pacific decides not to participate in TPIA’s rights issue
JAKARTA. The ultimate shareholder of 41.88% of PT Chandra Asri Petrochemical Tbk (TPIA), PT Barito Pacific Tbk (BRPT), announced its decision not to exercise its preemptive rights in TPIA’s rights issue. Instead, BRPT would transfer its preemptive rights to PT TOP Investment Indonesia (TII) as the standby buyer.
BRPT’s resolve not to take any parts in the rights issue is mimicked by Prajogo Pangestu, the shareholder of 13.33% of TPIA, and Marigold Resources Pte Ltd, who owns 4.75% of TPIA. They would also direct their preemptive rights to TII, both totalling IDR 15.48 trillion. On the other hand, SCG Chemicals Company Limited (SCG Chemicals), who seizes 30.57% of TPIA’s shares, announces its commitment to exercising its preemptive rights according to its ownership percentage.
These settlements of TPIA’s shareholders had been finalised during the preemptive rights sales and purchase agreement signing. Prajogo Pangestu and TII had also signed a conditional sales purchase contract on July 29, 2021, regarding the transfer of his stock portion in TPIA to TII. Erri Dewi Riani, GM Legal and Corporate Secretary of TPIA, specified the information in a press release, published yesterday (23/8).
After this rights issue, TPIA would direct all the proceeds to build a new plant in the form of a petrochemical complex integrated with its subsidiaries. It would consist of a naphtha cracker plant, polymer plant, and related facilities and utilities to support their operations, which include power supply, boiler, water treatment, jetty, and storage tanks. (AM/ZH)