Krakatau?s rights issue expected in Q4
Tuesday, July 19 2016 - 02:24 PM WIB
IDX-listed steel maker PT Krakatau Steel Tbk said on Tuesday that its planned rights issue is expected to take place in the fourth quarter of this year after obtaining approval from the Financial Services Authority (OJK).
The company said in a statement that it plans to hold a shareholders meeting on August 26 to discuss the proposed issuance of 4.99 billion new shares.
As has been previously reported by this portal, state-controlled Krakatau plans to launch rights issue after the government agrees to inject equity worth Rp 1.5 trillion.
Elsewhere, Krakatau said proceeds from the rights issue will be used to help finance the construction of a second hot strip mill with capacity of 1.5 million tons per year, and construction of a 1x150 MW coal-fired power plant.
Editing by Reiner Simanjuntak