Aug 29, 2010

Arpeni Ocean considers rights issue

Publicly listed shipping operator PT Arpeni Pratama Ocean Line Tbk (APOL) plans to seek Rp1.9 trillion fresh funds to increase its basic capital from Rp1 trillion to Rp2.99 trillion. One of the financing option is rights issue.  Arpeni’s stakeholder has approved such corporate action.
Arpeni President Director Oentoro Surya said that the company may choose two types of financing resources in order to jack up its capital; one of them is right issue.
“We have not decided when we will conduct such corporate action since we are still assessing the exact moment to hold such corporate action,” he said on Friday.
According to Oentoro, his company needs sufficient capital in order to support the company’s need over expansion and operational.
The global financial crisis and the decline of dry bulk shipping volume have affected Apreni’s performance and financial condition.
To enlarge its capital, Arpeni has appointed NM Rothschild & Sons as its financial advisor to conduct the strategic review over the company’s performance.
According to Oentoro, his company should do such measure since Arpeni’s stock price is below the face value.
So far, Arpeni still poses Rp1.5 trillion contract for coal shipping. The company owns 77 fleets. “The condition of the shipping industry is not conducive, making the company’s performance worse. However, we estimate an improved condition for our growth during the first half of 2010, approximately around 5%-10% as well as our net income,” said Oentoro.
At the moment Arpeni is in talks with the bonds holders regarding to the default of the interest bonds. The previous bond issuance reached US$160 million while the company’s obligation reached US$141 million.

Disclosure: No position at the stock mentioned above.

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