Apr 13, 2011

Malindo sets non preemptive rights

PT Malindo Feedmill Tbk plans to conduct stock split with a ratio of 1:5 and non preemptive rights in attempt to enhance the liquidity of its stock trading and increase its capital.
In an information disclosure published today, Malindo will split out its share value from Rp100 to Rp20 per share.
According to the schedule, the stock split is expected to be effective on March 31, 2011, while non preemptive rights will be held on March 31, 2012.
In the upcoming non preemptive rights, the company will issue 10% new shares of the total issued and fully paid up shares at a price of Rp4,462 per share. Malindo may secure Rp151.26 billion from this corporate action.
Malindo is a company engaged in the animal feed industry, poultry breeding of day old chick (DOC) and broiler chicken farm.
According to the plan, the company will use 66% or Rp100 billion the rights issue proceeds to finance the construction of feed mills and farms. Meanwhile, the company will use the rest of Rp51 billion as working capital.
The candidates of investor
On 11 April 2011, Malindo has entered into a share sale and purchase agreement with Amnah Binti Ibrahim, which Amnah will become the potential investor by acquiring new shares of Malindo.
Under the agreement, Amnah entitled to transfer shares or partial rights to membeki Malindo shares to other parties with due regard to prevailing regulations,
Amnah also does not affiliate with Malindo. After the rights issue, the issued and fully paid shares of Malindo increased to 1.86 billion shares from 1.69 billion shares.
Dragon Amity Ltd. has a 53.72% shares in Malindo and public investors hold 37.19% shares, while shareholders of new shares only acquire 9.09% shares. Malindo this afternoon declined 1.79% to Rp5,500 per share.

Disclosure: No position at the stock mentioned above.  

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