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Wednesday, March 9, 2011

Chandra Asri Petrochemical opens rights issue opportunity

BI / exchange
Irvin Avriano A. & Yusuf Waluyo Jati
Bisnis Indonesia

Chandra Asri Petrochemical opens rights issue opportunity

JAKARTA: PT Chandra Asri Petrochemical Tbk, a company results of PT Tri Polyta Indonesia Tbk and PT Chandra Asri merger, intends to held a limited public offering with the right of preemptive (rights issue).

The corporate action potentially accelerate the medium term fund-raising process. Meanwhile, the medium-term funding needs of the company reached US$400 million.

Chandra Asri Petrochemical Director Suryandi said the main purpose of the company to do rights issue shares is to make their TPIA coded shares more liquid it in the stock market compared to this time when the public portion only 5%.

"We want to increase public ownership, the way is by held rights issue with a possible portion of the shares will issued 15%-20%. Maybe later fund-raising could accelerate medium-term funding which we need, but the rights issue amount and time has not been ascertained," told him to the press.

Based on data from the company's ownership as of late January, the stock ownership by public investors only 5.14%. Meanwhile, the parent company's business groups, which are owned by Prajogo Pangestu, PT Barito Pacific Tbk, owned as much as 66.47% stake in the company, Appleton Investment Ltd by 22.87%, and Marigold Resource Pte Ltd of 5.52%.

He said the medium-term financing company consists of US$300 million to increase polyethilene production capacity until 2014. From these funds, the company plans to increase the capacity of factories from 600,000 tons to 1 million tons.

This year, the company has budgeted a short-term capital expenditure (capex) worth US$75 mio. The funds are allocated for additional production capacity of polypropylene and polyethylene, maintenance of company's equipment, and financing programs with the company's port joint venture in Singapore.



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