Multiartha plans rights issue

Multiartha plans rights issue

JAKARTA:Indonesia's PT Sinar Mas Multiartha said Friday it plans a 15-for-1 rights issue to raise Rp 213.71 billion (about US$26 million).

Sinar Mas Multiartha, a diversified holding company partly owned by Sinar Mas Group, will offer 15 rights shares at Rp 100 each for every share held by shareholders registered as of July 9.

The company will use 28 percent of the proceeds to increase working capital of its securities unit PT Sinarmas Sekuritas, 33 percent to repay the debt of its finance unit PT Sinar Mas Multi Finance, and 39 percent to strengthen working capital, it said in a statement.

The new shares will be listed on the Jakarta Stock Exchange and Surabaya Stock Exchange July 17.

The company will also give 15 warrants for every existing share held by shareholders who subscribe to the rights shares.

The warrants can be traded between July 23, 2003 and July 21, 2008. -- Dow Jones