May 13, 2011

Delta Dunia unveils Rp1.3 trio rights issue

Indonesia's second largest coal mining contractor PT Delta Dunia Makmur Tbk (DOID) aims to raise Rp1.3 trillion by issuing a 1.53 billion new shares in July.
Delta Dunia offers the exercise price of its new shares in the range of Rp850-Rp1,200 per share.
Each holder of 500 existing shares will entitle 79-112 preemptive rights. Each rights will entitle the holder to buy one new shares to be issued by Delta Dunia, parent company of PT Bukit Makmur Mandiri Utama (BUMA).
Northstar Tambang Persada Ltd (NTP), a controlling shareholder of Delta Dunia with 40.06% stake, is acting as a standby buyer for the rights issue with a commitment to buy a maximum of 916.78 million shares which would not be exercised by public shareholders.
NTP, which is indirectly owned by Texas Pacific Group, Government of Singapore Investment Corporation, and China Investment Corporation, has vowed to exercise its rights to buy 612.63 million shares.
Delta Dunia will use 22.5% of the proceed to pay debt to BUMA. About 60%-70% of the proceed will be utilized to underpin an organic growth and acquisition, and the remaining will be used for working capital.
Regarding to the proposed rights issue, the company schedules an extraordinary of shareholders meeting on June 13.

Disclosure: No position at the stock mentioned above.

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