Oct 20, 2010

Bumi Serpong & Rp5 trio rights issue

Property developer PT Bumi Serpong Damai Tbk (BSD), affiliated firm of Sinarmas Group, plans to hold rights issue of 5.56 billion shares-8.33 billion shares at Rp600-Rp900 per share. BSD enables to snap up Rp3.34 trillion-Rp7.49 trillion cash from the rights issue.
In a prospectus published today, the rights issue ratio is held at holders of 10 existing shares have rights to buy 5.08 new shares-7.62 new shares. 
Macquarie Capital (Singapore) Pte Ltd and PT Sinarmas Sekuritas have committed to be standby buyers for the rights issue.
BSD's major shareholder PT Paraga Artamida is committed to exercise its rights during the rights issue.
BSD aims to use 87.2% of the proceed to acquire affiliated property firm PT Duta Pertiwi Tbk (DUTI), stake in PT Sinar Mas Wisesa (SMW), and stake in PT Sinar Mas Teladan (SMT).
BSD plans to acquiee 1.58 billion shares in Duta Pertiwi at Rp2,200 per share or Rp3.47 trillion, consisting of 644.94 million shares from Paraga Artamida and 933.33 million shares from PT Ekacentra Usahamaju.
BSD also intends to buy 50.36 million new shares in SMW worth Rp387.1 billion and 15.26 million new shares in SMT at Rp500.9 billion.
The remaining proceed of 12.9% will be utilized by BSD to support working capital. Bumi Serpong stocks today plumetted 16.19% to Rp880 per share on massive sell-off.

Disclosure: No position at the stock mentioned above.

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