Chandra Asri successfully completes IDR15.5 trillion rights issue
JAKARTA - PT Chandra Asri Petrochemical Tbk (TPIA), Indonesia’s largest integrated petrochemical company, has successfully completed its Pre-Emptive Rights Issue, the Limited Public Offering III which has obtained an effective statement from the Financial Services Authority (Otoritas Jasa Keuangan). All new shares issued was fully subscribed and the Company has successfully raised additional capital of IDR15.5 Trillion or USD1.1 Billion, to close one of the largest rights issue ever done in the Indonesia Stock Exchange to date.
After the rights issue, the Company's total outstanding shares increased by 3,794,366,013 shares (from 17,833,520,260 to 21,627,886,273 shares). The composition of public shares is approximately 8.2%, fulfilling the free-float requirements of the Indonesia Stock Exchange. The standby buyer underpinning the successful transaction was PT TOP Investment Indonesia, a subsidiary of Thai Oil Public Company Limited (Thaioil), the flagship refiner of PTT Public Company Limited (PTT).
Suryandi, Director Human Resource and Corporate Affairs, of Chandra Asri, says: “We are delighted with the successful completion of our rights issue, and welcome Thaioil as a new principal shareholder of Chandra Asri. The financing raised provides us with a solid equity base to proceed with our plans to develop our second petrochemical complex expeditiously. We are grateful for the continuous support of our shareholders, investors, regulators and other key stakeholders to make this transaction a resounding and tremendous success.”
With the successful execution of the Rights Issue process and equity injection, Thaioil via its subsidiary now holds a 15% shareholding stake in the Company and forms a part of the key major shareholders and sponsors of Chandra Asri alongside Barito Pacific and SCG Chemicals. Thaioil and Chandra Asri have also entered into feedstock sales and purchase agreements for the supply of naphtha and liquefied petroleum gas to Chandra Asri and CAP 2, and a product distribution agreement, to provide security of feedstock supply and unlock further value via synergies. Subject to a successful Final Investment Decision (FID) on CAP 2 targeted for 2022, Thaioil and SCG Chemicals are may further collectively invest up to USD0.4 billion. The methods of the subsequent investment will be determined by the parties at a later stage and remain subject to the approval of Chandra Asri shareholders and relevant governmental authorities in the Republic of Indonesia.
Investment in CAP 2 is projected to be around USD 5 billion. Construction is expected to take 4 to 5 years, creating 25,000 jobs over the period. It will double the Company’s production capacity from the current 4.2 million tons a year to more than 8 million tons a year. (LM)