Jun 3, 2011

Reignwood pledges 16% ENRG

Thai-based conglomerate Reignwood International Investment (Group) Company Limited, which is founded in 1984 by Thai-Chinese businessman Chanchai Ruayrungruang, has pledged 6.4 billion shares or nearly 16% of total equity of oil and gas company PT Energi Mega Persada Tbk (ENRG) to The Siam Commercial Bank Public Company LImited.
Assuming the market price on Wednesday at Rp210, Reignwood has pledged Rp1.34 trillion of Energi Mega shares on May 19. However, there is no clarity from Reignwood about the pledge purpose. 
Despite the pledge, Energi Mega soared 8.25% on Wednesday to Rp210, sending a 25% monthly gain to investors. 
Two sources familiar with the deal said using loan facility from Siam Bank, Reignwood might release shares of Energi Mega which previously pledged by their owners to several creditors.
This actions are similar when Bakrie Group initiated to release shares of Bumi Resources before they transferred the shares to Bumi Plc.
Bakrie Group obtained US$1.34 billion loan facility from Credit Suisse to settle Bakrie's debt to all creditors and release the pledge.
Herwin Hidayat, Head of Investor Relations at Energi Mega, said he didn't have any information relating to the pledge and who investors behind Reignwood. "We received the letter from Reignwood and filed it to Indonesia Stock Exchange as a disclosure," he said.
Reignwood manages four business sectors such as consumer goods, modern services industry, sport, art, and culture, investment and financial services. Red Bull Vitamin Drink Company Limited in China is one of companies owned by Reignwood Group.

Disclosure: No position at the stock mentioned above.

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