Jun 6, 2012

Sarana Menara & non preemptive rights

Telecommunication tower operator PT Sarana Menara Nusantara Tbk (TOWR), controlled by Djarum's Hartono family, reported that it will issue 102 million new shares in non preemptive rights (or 10% of enlarged capital). 
The price is set at Rp14,798 per share, determined by the average price 25 days prior to the announcement. However, Sarana Menara's Corporate Secretary Arif Pradana, in official statement filed to Indonesia Stock Exchange (IDX), today said the company has not any information regarding to investors who will subscribe those new shares during the rights issue. Those investors will be determined by Sarana Menara.
Q1 performance
Sarana Menara, an affiliated of cigarette maker Djarum Group that is controlled by Hartono family, reported a 50.29% drop in net profit for the first 3 months of this year as a result of other losses of Rp62.22 billion.
Sarana Menara posted Rp75.19 billion net profit in 1Q 2012 from Rp151.26 billion in 1Q 2011. Operating profit increased 37.51% to Rp269.76 billion from Rp196.17 billion, while gross profit rose 34.38% to Rp319.80 billion from Rp237.98 billion.
TOWR booked a 30.47% increase in revenue to Rp481.50 billion from Rp369.05 billion.
Sarana Menara is controlled by Hartono family via PT Tricipta Mandhala Gumilang and PT Caturguwiratna Sumapala with 24.55%, and public shareholders with 49.90% stake.
What do you think about the corporate secretary statement? Do you believe that Arif Pradana does not know anything about the rights issue?  

Disclosure: No position at the stock mentioned above.

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