Bakrie Plantations to launch rights issue<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Publicly listed PT Bakrie Sumatra Plantations, which owns about
\n30,000 hectares (ha) of oil-palm plantations in Indonesia, plans
\nto sell 1.1 billion new shares via a rights issue to raise cash
\nto finance its expansion programs.<\/p>\n
The sale, slated for Nov. 10, will fund the acquisition of
\nplantation firms and debt repayments, the company said on Monday.<\/p>\n
While it did not provide details on how much Bakrie planned to
\nraise nor how much debt it intended to pay, president director
\nAmbono Janurianto had previously told The Jakarta Post the rights
\nissue was expected to raise between Rp 200 billion (US$21.97
\nmillion) to Rp 300 billion.<\/p>\n
The Jakarta-based company said it planned to acquire 85
\npercent shares in PT Agro Mitra Madani, which operates about
\n11,000 ha of oil-palm plantations, and 100 percent shares in PT
\nHuma Indah Mekar, which has 4,400 ha of rubber plantations.<\/p>\n
Ambono said Bakrie projected the acquisitions would boost
\nsales revenue this year by at least 40 percent on higher
\nproduction and commodity prices.<\/p>\n
Last year, Bakrie recorded sales of Rp 457 billion, up from Rp
\n357 billion in 2002, and a net profit of Rp 80 billion, against
\nRp 75.9 billion in 2002.<\/p>\n
The company is also in the process of splitting its stock to
\nsmooth the shares sale at a more affordable price for investors.<\/p>\n
Bakrie Sumatra Plantations is 52.5 percent owned by Bakrie
\nGroup, with the rest held by the investing public.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-plantations-to-launch-rights-issue-1447893297",
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"sponsor": "Okusi Associates",
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