Bakrie & Brothers to pay all debts with funds from rights issue<\/p>\n
JAKARTA (JP): PT Bakrie & Brothers (B&B) will sell 263 million
\nrights shares to raise US$600 million in fresh funds to
\ncompletely repay its debts of Rp 250 billion ($116.1 million) and
\nto acquire shares of four companies within its own group.<\/p>\n
Tanri Abeng, president of the company, told reporters after an
\nextraordinary meeting of its shareholders here yesterday that the
\ncompany will acquire shares of PT Bakrie Nusantara Corporation, a
\nseamless pipe manufacturer, at $65 million.<\/p>\n
B&B will also acquire PT Bakrie Investindo's shares in PT
\nIndocopper Investindo, PT Arutmin Indonesia and PT Catur Swasakti
\nUtama, the owner of the Wisma Bakrie building, at a total of $306
\nmillion.<\/p>\n
Tanri said the share acquisition and the debt payment will
\nstrengthen the capital of B&B, the holding company of the Bakrie
\nGroup which has three core businesses -- telecommunications,
\ninfrastructure facility manufacturing and plantation.<\/p>\n
He said the debt payment will eliminate B&B's debts of Rp 250
\nbillion, thereby reducing the debt equity ratio of Bakrie Group
\nto 0.5 percent from 2.5 percent at present.<\/p>\n
B&B's subsidiaries currently have total debts of Rp 700
\nbillion.<\/p>\n
Tanri said rights shares will be issued on June 20.<\/p>\n
He explained that the Bakrie Group will concentrate on its
\ncore businesses to make itself a market leader.<\/p>\n
The Bakrie Electronic Company, for example, in cooperation
\nwith PT Telkom, the state-owned domestic telecommunications
\nservice company, will develop an advanced rural telephone system
\nthat will offer low prices to customers. (yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-brothers-to-pay-all-debts-with-funds-from-rights-issue-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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