Release: UT proposes rights issue to raise around US$390 million
Friday, July 18 2008 - 12:45 PM WIB
The Rights Issue is subject to the Company obtaining effective letter from BAPEPAM & LK and shareholders? approval for the Rights Issue at an extraordinary general meeting of shareholders scheduled to be convened on 19 August 2008.
Completion of the Rights Issue is indicatively scheduled for the third quarter of 2008.
The proposed Rights Issue is expected to raise around Rp. 3,565 billion (US$390 million) through the issuance of approximately 475,268,183 shares.
Shareholders whose name are registered in the Share Register of the Company on the date to be approved by the EGM will be entitled to one pre-emptive right for every six shares held. Each pre-emptive right will entitle the holder to subscribe for one share at a price of Rp. 7,500 per share. The Rights Offer Price, the terms of the Rights Issue, and the schedule of Rights Issue are subject to change by the Company in its absolute discretion and such changes will be announced to the shareholders at the latest two days before the EGM.
The Company plans to use the net proceeds of the Rights Issue to (i) repay its existing debt borrowed to acquire the Company's majority stake in PT Tuah Turangga Agung, (ii) fund the Company?s working capital expansion needs and (iii) fund capital expenditures, including potential future acquisitions of mining companies or assets located in Kalimantan, Sulawesi and Sumatra, or injected as loans to PT Pamapersada Nusantara, a subsidiary of the Company.
PT Astra International Tbk, UT?s majority shareholder, has committed to subscribe for its full entitlement of Rights Shares under the Rights Issue and has agreed to act as Standby Purchaser for the Rights Issue whereby it will purchase all Rights Shares which are not taken up by other shareholders in the Rights Issue.
UBS Investment Bank is acting as the Sole Financial Advisor to the Company in connection with the Rights Issue.(end of release)