JAKARTA (TheInsiderStories) – Sinarmas Group plans to become a shareholder of PT Bank China Construction Bank Indonesia Tbk (IDX: MCOR) or CCB Indonesia. This was revealed in the prospectus submitted by the company today (07/06).
Base on the planned the company belonging to the Widjaja family will enter through PT Sinar Mas Multiartha Tbk (IDX: SMMA) as a standby buyer for the issuing of new shares through the preemptive rights scheme by the local bank.
The prospectus stated that the exercise price of the rights issue was Rp150 per share or with total value of Rp3.19 trillion (US$224.65 million). This stock price is higher than the average price of CCB Indonesia shares on Friday last week’s trade at the level of Rp 133 per unit.
Its added, every 100 old shares of the company is entitled to 128 new shares, where one new share is entitled to buy another one new share. “Sinar Mas Multiartha will buy all remaining unsold shares at the exercise price,” the management wrote.
This news made PT Indonesian Rating Agency (Pefindo) immediately give idAAA rating to CCB Indonesia with a stable outlook. “Pefindo decided to give idAAA a rating with a stable outlook on CCB Indonesia from June 24, 2020 to June 1, 2021,” Pefindo’ managing director, Salyadi Saputra, said in an official statement.
The rating is given based on data and information from the company and the unaudited financial statements as of March 31, 2020 and Dec. 31, 2019. Pefindo states, the lender rating does not apply to certain debt securities issued by the company, because it does not take into account the structure and various provisions of the debt securities, the level of protection and position of the claims of the debt securities holder if the issuer experiences liquidation, as well as its legality.
In addition, he said, the company’ top ranking does not take into account the ability of guarantors, insurers, or other credit enhancement providers that support a particular debt effect. Previously, CCB Indonesia announced it would issue as many as 21.29 billion new shares.
The number of new shares to be issued to strengthen the bank’ capital is 56.14 percent of the total shares outstanding after the LPO. Meanwhile, Sinar Mas Multiartha is ready to become a standby buyer and absorb the remaining new shares of the company if the old shareholders do not realize their right to redeem these new shares.
CCB Indonesia is the result of a merger from PT Bank Windu Kentjana International Tbk and PT Bank Antarctaerah in 2016.
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