Express Transindo Adds Capital via Right Issue US$71M
The picture shows a conventional taxi Blue Bird and ride-hailing taxi operated by Go-Car. Photo by Blue Bird Group

JAKARTA (TheInsiderStories) – Indonesian taxi operator, PT Express Transindo Utama Tbk (TAXI) will make additional capital through the issuance of new shares.

Based on the information disclosure released from the Indonesia Stock Exchange, TAXI will add 10 billion new shares with total amount of Rp 1 trillion or equivalent to US$70.92 million. This value is equal to 466.07 percent of the current issued and fully paid capital.

The issuance of shares this time is an effort made to improve the company’ financial position, including paying the TAXI Bond was issued in 2014. The debt rating has been revoked by PT Pemeringkat Efek Indonesia at the request of the management.

Based on the agreement of the Bondholders on Dec. 11, 2018, the majority agreed that the debt was converted to new shares without going through a rights issue.

New shares to be issued will be converted gradually. The first phase conversion of Rp 400 billion or 4 billion shares will be carried out after the approval of the Extraordinary General Meeting of Shareholders on Feb. 8, 2019.

While the second phase conversion amounted to Rp 600 billion or 6 billion shares in the form of changes in the remaining 2014′ bonds become a convertible bond. Furthermore, the share ownership of the existing shareholders will be subject to a minimum dilution of 65.09 percent if the first phase of conversion is completed.

Then, TAXI will pay off the entire principal of the convertible Bond worth Rp 600 billion. After completed, the share ownership of the existing shareholders will be diluted to a maximum of 82.33 percent.

The implementation of the addition of new shares without the rights issue will be conducted on April 30, 2019 for the conversion of the first phase and for the conversion of the second phase on Dec. 31, 2020.

For information, the largest portion of TAXI share ownership is still held by PT Rajawali Corpora by 51 percent. The second largest portion is owned by the public at 48.99 percent while the remaining 0.01 percent is owned by Megawati Affan as Director of TAXI.

The TAXI is one of the taxi operators in Indonesia that was established in 1989 and operates in the Great Jakarta area.

The issuer that has been on the market since November 2, 2012 has a fleet of nearly 10,000 vehicles per September 30, 2018. The company’s main services are regular taxis with the Express and Eagle brand, Tiara Express premium taxis, Eagle High tourism buses, and value-added transportation business.

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