May 26, 2011

Lippo Karawaci & non-preemptive rights

Property developer company PT Lippo Karawaci Tbk (LPKR) has unveiled a proposed non-preemptive rights of 1.45 billion shares scheduled on June 8, 2011 in a bid to raise financing.
In its information disclosure published today, the company, which is controlled by Indonesian businessman James Riady said that it will distribute new shares on June 7, 2011.
Lippo Karawaci’s outstanding shares are 21.63 billion, reflecting a Rp14.27 trillion market capitalization.
Previously, the company reported to place 1.45 billion ordinary shares owned by its affiliated Pacific Asia Holdings Limited at the price Rp660 per share. CLSA is the sole bookrunner of the shares placement.
Lippo Karawaci said that it will use Rp673.73 billion or represented 70.4% of its proceeds to acquire 27.24% of the ownership in LMRIT and 40% of the rights in asset manager LMRIT Mgt.
The company also paid Rp403 billion or US$47.1 million sourced from its internal cash. As of March 31, 2011, Lippo Karawaci reported Rp3.28 trillion or US$383.2 million of its internal cash.
The company took over more than half of 27.24% of the ownership in LMRIT from its affiliated company, while the rest of the shares is bought from Mapletree LM Pte Ltd and Mapletree Capital Management Pte Ltd.
The ownership of Lippo Karawaci in LMRIT soared 13 times after the transaction from 2.26% to 29.5%.
The LPKR-coded stock gained 3.17% or Rp20 to Rp650 at the Jakarta Stock Exchange as of 2.48 p.m. local time.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: