Multistrada to propose a huge bank loan

20/5/2011

Irvin Avriano A.

Multistrada to propose a huge bank loan

JAKARTA: PT Multistrada Arah Sarana Tbk, a local listed tire producer company, intend to pledge most or all of their asset to obtain bank's loan.

The matter was revealed on the company's announcement through Indonesia Central Securities Depository (PT Kustodian Sentral Efek Indonesia/KSEI) website last afternoon.

The website disclosed about Multistrada's annual and extraordinary general meeting of shareholders (AGM & EGM) and its agendas.

The action indicated that the bank will propose another big number of bank's loan, usually from foreign banks, that need to be pledged by their asset.

The agenda also record that the company intend to change some of its charter in the meeting. The previous charter changing happen not so long ago, in February. The previous EGM allow the company that commandeered by Pieter Tanuri to add industrial plantation forest management, especially rubber, in their business line.

Pieter, after the previous EGM, told reporters that they intend to support the new business line by adding capital by opening options for rights issue or from bank loan. Until now, the company haven't realize their plan to do rights issue.

The announcement also strengthens indications that they drop their rights issue plan, seen by the absence of rights issue plan on their EGM agendas.

The AGM and EGM will held on June 22nd in Graha CIMB Niaga, Jakarta, like used to.

The mid-cap category shares' price already boosted 62.96% since IDR27o on March 22nd until yesterday.

Last year, the company pocketed US$143 million loan from PT Bank International Indonesia (BII), PT Bank CIMB Niaga Tbk, The Hongkong and Shanghai Banking Corporation Limited (HSBC) with 5 year term, plus German Unicredit AG of US$42 mio with 6 years tenor.

Most of the loan fund, as much as US$129.5 mio, used by the company to build a new tire plant that expected can be full produce tire and support its financial performance next year.

The company shares, that been coded MASA, corrected IDR5 or 1.12% to IDR440 level yesterday. The price formed the company's price to earnings ratio (PER) 14.37 times and market capitalizations to IDR2.69 trio.