BRMS to launch non-preemptive rights issue

IDX-listed mineral mining company PT Bumi Resources Minerals Tbk (BRMS) plans to issue 36.75 billion new shares (B-series) in a non-preemptive rights as part of a debt to equity conversion program agreed with creditors.

The new shares will be issued at a price of Rp 84 each, the average price of BRMS shares on the IDX during the past 25 working days, thus making the planned transaction to worth Rp 3.8 trillion.

Company Corporate Secretary Muhammad Sulthon was quoted by Kontan as saying Saturday that the rights issue will create a dilution effect of 58.97 percent to existing share owners of the company.

The entire proceeds will be used to repay maturing debts of US$286.12 million to creditors including Wexler Capital Pte Ltd ($100.96 million), First Financial Company Ltd ($90 million), and charges for services received by BRMS and subsidiaries worth $41.15 million.

BRMS is scheduled to hold a meeting with shareholders on Tuesday to seek approval for the proposed rights issue program. (*)