Capitalinc will most of its PN issuance for debt acquisition

Capitalinc will use most of its PN issuance for liabilities acquisition

Thrusday, 23/09/2010 19:35:40 WIB

By: Irvin Avriano A.

JAKARTA: PT Capitalinc Investment Tbk will use most of its promissary notes (PN) issuance, as much as IDR64.93 billion, to paid up liabilities from 5 oil and gas companies that will be bought. Its usage will delivered from total issuance of the PN as much as IDR120 billion.

"From the issuance, IDR55.07 billion will be used for take over the equities, and the rest is for their liabilities," said Capitalinc Director Budi Prihantoro when contacted by Bisnis tonight.

The PN issuance itself already planned by the management to fund the acquisition, tenured 3 years and charged coupon around 10--12% per annum. The debt instrument will be sold to the former oil and gas owner as the purchasing payment.

The 5 companies that will acquired are 90% PT Kutai Etam Petroleum equity worth IDR4.5 billion from PT Naga Mas Surya Cemerlang, 99% PT Kencana Surya Perkasa equities worth IDR1.38 billion from PT Masagena Agung, and 24% PT Mosesa Petroleum equity worth IDR2.4 billion from PT Masagena Agung.

Beside those three companies, Capitalinc will acquire 99.5% PT Cahaya Batu Raja Blok equities worth IDR41.79 billion from PT Nusantara Gagas Energi, and 100% Greenstar Assets Ltd equities worth IDR5 billion from Thames Liberty Trading Corp.

Capitalinc already pocketed approval to buy the five oil and gas companies from its shareholders in extraordinary general meeting (EGM) that been held this Tuesday. The acquisition approval has been given simultaneously with the reorganization of its board of director and commissioner.

Sandiaga Uno, the founder of Recapital Advisors Group which is holdco of Capitalinc, resign from his in president commissioner position in the emitter. His position will be concurrently by independet commissioner, Isakayoga.

Capitalinc president director position also changed. Budi, which formerly positioned as the CEO, replaced by Seng-Hoo Ong, but he is still in charge in the company as a director. The company also have another new director, namely Vinayaka Bandagadde and Frederik Hendrik Agustinus Hehuwat. Febriansyah Marzuki was also still in his position as company's director.

The emitters also get approval from its shareholder to add business line to invest in oil and gas companies.

The price of Capitalinc shares that coded MTFN rocketing today as much as 24.71% or worth IDR210 to the IDR1.060 level and formed its market capitalization in the amount of IDR772.47 billion. (bsi)