Jun 20, 2010

Bakrieland to downsize rights issue

Property developer and toll road operator PT Bakrieland Development Tbk (ELTY) today announces its plan to downsize 40% of rights issue target from Rp5.4 trillion to Rp3.2 trillion.
"We have decided to downsize the rights issue target after we met our investors," Bakrieland's President Director Hiramsyah S. Thain in a press statement today.
According to him, Bakrieland has obtained strategic partners to develop property projects, shrinking the financial cost. 
"We have renegotiated the projects, in return, we can pay in installments. Bakrieland also reconsiders financing scheme to support the projects," he said.
Hiramsyah said Bakrieland has agreed to revise down acquisition value of PT Sentul City Tbk (BKSL) and equity injection into PT Bukit Jonggol Asri amounting to Rp1.3 trillion because Bakrieland is able to pay the deal in installments.
Bakrieland also cuts development cost by Rp0.5 trillion for Bogor Nirwana Residence. "We plan to set joint operation with strategic partner." The company also reduces developing cost of Ciawi Sukabumi toll by Rp0.4 trillion.

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