Sep 23, 2014

BW Plantation rights issue at 60% discount?

A palm oil producer PT BW Plantation Tbk (BWPT), controlled by Budiono Widodo family, may put exercise price of preemptive rights at about Rp400 a share, nearly 60% discount from the latest market price prior to suspended by Indonesia Stock Exchange at Rp955 a share.
With a ratio of 1:6 (1 existing share has 6 rights) and Rp11 trillion proceed, the exercise price is estimated at Rp407 and theoritical price at Rp349 a share. Post rights issue, BW Plantation is expected to have a Rp11 trillion market cap.
A source close to the deal said with the steep discount from the latest market price, public shareholders are expected to exercise their rights for new shares.
The standby buyers for the new shares are Rajawali, Danareksa Sekuritas, Mandiri Sekuritas, BNI Securities,Valbury Asia Securities, and CIMB Securities.
Disclosure: No position at the stock mentioned above.

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