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Monday, December 20, 2010

Pan Brothers reduce rights issue funding

Irvin Avriano A.

Pan Brothers reduce rights issue funding

JAKARTA: PT Pan Brothers Tbk, a publicly listed garment company, set their rights issue price at IDR1,350, that will reduce their targeted fund from previously maximum IDR701.57 billion to only IDR601.34 billion.

On their rights issue published today on Bisnis Indonesia daily newspaper, the company reduce the utilization of rights issue's fund for its working capital and expansion, also for its subsidiary from previous plan IDR341.1 billion to only IDR.240.47 billion.

In contrast, the company increase their funding plan to acquire 51% stake on PT Hollit International, a garment trading house, from previous plan IDR41.39 billion to IDR41.79 billion.

But the odd condition is the company will use only IDR41.69 million to grab stake on Hollit International, divided into IDR23.08 billion to buy the targeted shares and IDR17.88 billion to increase capital in the new subsidiary, equals only IDR41.69 billion. Where is the other IDR100 million?

The company also adding another usage of rights issue's plan to buy land bank and property amounted to IDR18.44 billion from Liliana Gani, in which affiliated with the emitter.

The company that given stock code PBRX will use a same amount of fund to raise their capacity, amounted to IDR100.6 billion, even when the fund raised in the rights issue reduce.

From the previous prospectus, the company will use 14.34% from the raised fund to boost its capacity, but in the newest one shows they will use only 16.73% portion to do the same goal, that will do same amount.

The exact amount also will used to add stake on their subsidiary, PT Pancaprima Ekabrothers, amounted around IDR200.43 billion with ratio differences from 28.57% to 33.33%.

The rights issue itself will issue 445.44 million new shares with nominal value IDR100.

Besides the new shares, the company that led by Ludijanto Setijo also issue 148.48 million warrant with same nominal value but higher offered price, IDR1,600 per paper.

The maximum amount from warrant issuance that can be raised by the company is IDR237.56 billion. All of the fund will used for Pan Brother's working capital.

The warrant can be executed into new shares on July 2011--January 2013 and for each paper can be right for three shareholder.

Previously, they already pocketed commitment from their shareholder, named Darwin, PT Ganda Sawit Utama, and PT Trisetijo Manunggal Utama to buy unsold rights. They ready to buy 53.36 million shares of the total 237.70 million shares.

Trisetijo Manunggal itself on December 14th signed the agreement to buy shares in rights issue II. Trisetijo prepares to buy the remaining shares of Pan Brothers, at the least 58.59 million shares.

To smoothing the plan, the emitters will hold an extraordinary general meeting of shareholders (EGM) on December 22th in Financial Club, Graha Niaga 2nd Floor, Jakarta.



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