Sep 27, 2010

Tri Polyta to issue 2.33 bio new shares

Polypropylene maker PT Tri Polyta Indonesia Tbk (TPIA) plans to jack up its equity capital by issuing 2.33 billion new shares during a merger plan with PT Chandra Asri.
Based on a merger prospectus published today, Tri Polyta will issue 2.33 billion new shares to swap with 100% equity of Chandra Asri which is fairly valued at US$921.06 million or IDR8.37 trillion.
In return, 1 share of Tri Polyta equals to Rp3,590 per share. In June 2010, Tri Polyta's fair value of 100% equity was IDR2.61 trillion or Rp3,579 per share.
Based on valuation, 1 share of Chandra Asri will be converted with 42.660,50 shares of Tri Polyta.
The merger between Tri Polyta and Chandra Asri is estimated to generate a combined revenue amounting Rp17 trillion-Rp20 trillion per year along with US$1.5 billion (IDR13.35 trillion) assets.
After the merger, Tri Polyta will change its name into PT Chandra Asri Petrochemical Tbk.
Director and the Corporate Secretary of Tri Polyta Survandi said that such merger will not only grant certain financial benefits but also operational benefits.
“The vertical merger is expected to produce a synergy for both companies. The total asset generated from such merger may reach US$1.5 billion, of US$1.2 billion is Chandra Asri’s and the remaining US$280 million is Tri Polyta’s. We expect such merger to be effective by 1 January 2010,” he said.
After shares swap, PT Barito Pacific Tb (BRPT), parent company of Tri Polyta and Chandra Asri, will control 66.36%, Glazers & Putnam Investment Ltd owns22.87%, Marigold Resources Pte Ltd holds 5.52%, Prajogo Pangestu owns 1.04%, while Ibrahim Risjad, Henry Halim, and public shareholders hold 0.45%, 0.06%, and 3.70% respectively.
 
Disclosure: No position at the stock mentioned above.

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