Oct 20, 2011

Central Omega to hold rights issue

PT Central Omega Resources Tbk is planning to raise Rp983.74 billion proceed from rights issue of 983.74 million new shares at Rp1,000 per share. The rights issue is scheduled in December this year.
According to the rights issue prospectus, every holder of one existing new share of Central Omega will entitle nine preemptive rights to buy new shares to be issued by the company. Each holder that exercises rights to buy 27 new shares will entitle one warrant series I.
Central Omega will use 50% of the proceed to set up participation into a new company that will be established after the rights issue. The new company will operate a smelter.
The company plans to use 30% of the proceed as additional capital expenditure for its subsidiary and the remaining will be allocated for working capital for itself and subsidiary.
Post rights issue, Central Omega will be 97.72% controlled by PT Jinsheng Mining, a company focusing on minerals trading such as zinc, copper, nickel, and iron. 
Jinsheng Mining is owned by Chen Wen Ping (40%), PT Danpac Resources Kalbar (30%), and Victory Light (30%). Danpac Resources is owned by Sencaka (50%) and Yoevan Wiraatmaja (50%), while Victory Light is owned by Noble Champion International Ltd.

Disclosure: No position at the stock mentioned above.

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