Bakrie Plantations to launch rights issue

Bakrie Plantations to launch rights issue

The Jakarta Post, Jakarta

Publicly listed PT Bakrie Sumatra Plantations, which owns about
30,000 hectares (ha) of oil-palm plantations in Indonesia, plans
to sell 1.1 billion new shares via a rights issue to raise cash
to finance its expansion programs.

The sale, slated for Nov. 10, will fund the acquisition of
plantation firms and debt repayments, the company said on Monday.

While it did not provide details on how much Bakrie planned to
raise nor how much debt it intended to pay, president director
Ambono Janurianto had previously told The Jakarta Post the rights
issue was expected to raise between Rp 200 billion (US$21.97
million) to Rp 300 billion.

The Jakarta-based company said it planned to acquire 85
percent shares in PT Agro Mitra Madani, which operates about
11,000 ha of oil-palm plantations, and 100 percent shares in PT
Huma Indah Mekar, which has 4,400 ha of rubber plantations.

Ambono said Bakrie projected the acquisitions would boost
sales revenue this year by at least 40 percent on higher
production and commodity prices.

Last year, Bakrie recorded sales of Rp 457 billion, up from Rp
357 billion in 2002, and a net profit of Rp 80 billion, against
Rp 75.9 billion in 2002.

The company is also in the process of splitting its stock to
smooth the shares sale at a more affordable price for investors.

Bakrie Sumatra Plantations is 52.5 percent owned by Bakrie
Group, with the rest held by the investing public.