Nov 3, 2010

Citra Marga eyeing Rp490b rights issue

Toll road operator PT Citra Marga Nusaphala Persada Tbk (CMNP) plans to raise about Rp490 billion through a rights issue or bond issuance to fund the land acquisition for toll road construction.
Commissioner of Citra Marga Nusaphala Persada Indrawan Sumantri, as reported by today, confirmed that the option for boosting the company's capitalization will be realized at least in the first half of 2010.
According to him, the land acquisition for Depok-Antasari route is estimated to require Rp770 billion fund, while the company’s internal cash is just around Rp280 billion to support the plan.
The total investment value of 21.7-km Depok-Antasari toll road is estimated to reach Rp2.2 trillion. Yet, the toll road investment doubles to around Rp5 trillion because of land price increase.
On the other hand, for January to September 2010, CMNP posted the growth in operating revenue worth Rp552.29 billion in the first nine months of the year, 24.71% higher than Rp442.57 billion in the same period of last year. 

Disclosure: No position at the stock mentioned above.

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