Krakatau to launch rights issue

IDX-listed steel maker PT Krakatau Steel Tbk plans to soon launch rights issue after the government agrees to make equity injection worth Rp 1.5 trillion to help finance expansion programs, Kontan reported on Thursday.

The paper said that the government equity injection will form part of the Rp 1.85 trillion proceeds target to be raised from the planned rights issue.

?We?ll soon launch rights issue,? Krakatau Director Dadang Danusiri told the paper.

Krakatau will use the proceeds to finance the second phase development of a hot strip mill with a capacity of 1.5 million tons per year, and a 150 MW power plant, the paper said. (*)