Nov 22, 2010

Pan Brothers to buy Hollit International

PT Pan Brothers (PBRX), a garment producer, will conduct the second rights issue (rights issue II) in January 2011 to raise IDR701.57 billion.
As stated in a rights issue prospectus published today, Pan Brothers will issue 445.44 million new shares with price in the range of IDR1,000-DR1,575 per share.
Each shareholder of Pan Brothers gets a preemptive right to buy one new share in the right issue.
Pan Brothers plans to use 14.34% of the cash from rights issue to invest in enlarging production capacity and 28.57% of the cash to add more capital for its subsidiary, PT Pancaprima Ekabrothers.
In addition, 5.90% fund from rights issue will be utilized to acquire 51% shares of PT Hollit International, a selling agent for garment companies, and to add more capital in Hollit International.
Meanwhile, the other 48.62% fund is allocated to improve working capital and business development of Pan Brothers and its subsidiaries.
Pan Brothers has received notification from several shareholders, i.e. Darwin, PT Ganda Sawit Utama, and PT Trisetijo Manunggal Utama, to take part in the rights issue by buying 53.47 million shares of the total 237.70 million shares.
Trisetijo Manunggal on November 19, 2010 signed the agreement to buy shares in rights issue II. Trisetijo prepares to buy the remaining shares of Pan Brothers, at the least 16.27 million shares.

Disclosure: No position at the stock mentioned above. 

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