PT Berau Coal Energy Tbk (BRAU) is seeking an approval from its shareholders regarding to a transfer authority to board of commissioner for 3.40 billion of new shares issuance or nearly 10% of outstanding shares.
Such matter will be discussed during an extraordinary general meeting (EGM) with two other agendas, said Berau's management in a disclosure to Indonesia Stock Exchange late last week.
Referring to the last week's closing level at Rp420, Berau Coal might secure Rp1.43 trillion cash from the shares issuance.
The new shares issuance has been scheduled after the initial public offering. However, the disclosure has not revealed more detail information of the new shares issuance.
Pursuant to 41 article of regulation No.40/2007 about limited company, the authority is effective within 1 year.
However, the commissioner has not exercised the authority. Hence, the company needs to delegate the authority to the commissioner.
The EGM is seeking approvals for a US$500 million bond issuance and pledge from the company to bond holders.
Disclosure: No position at the stock mentioned above.
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