Aug 8, 2011

Jababeka to hold rights issue & bonds

Property developer PT Kawasan Industri Jababeka Tbk (KIJA) today finally revealed a preemptive rights issue along with the proposed US$150 million bond issuance.
In an official statement submitted to Indonesia Stock Exchange (IDX) late today, Vice President Director Budianto Liman said the company schedules an extraordinary of shareholders meeting on September 20 2011 to seek approval on such corporate actions.
Along with the financing requirements, Jababeka needs an approval from the meeting to acquire two companies namely PT Banten West Java Tourism Development and PT Tanjung Lesung Leisure Industry at the consideration price of Rp1.5 trillion.
The company seeking US$310 million financing to underpin its business expansion and refinance debt this year.
Jababeka President Director Setyono Djuandi Darmono said the financing is consisting of US$160 million for land acquisition, US$110 million to develop infrastructure facilities in industrial estate, Cikarang, and US$40 million to refinance debt to CIMB Niaga.
"We are exploring options of bond issuance, rights issue, and combination of both," he said.
To develop infrastructure facilities, he said Jababeka needs financing to accomplish power plant of Bekasi Power and Cikarang Dry Port. The company is scouting 400 hectares of land acquisition.
Jababeka has officially mandated PT Danareksa Sekuritas as financial adviser for the actions, including rights issue.

Disclosure: No position at the stock mentioned above.
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