JAKARTA (TheInsiderStories) – PT Huawei Tech Investment, Indonesia’ unit of Chinese telecommunications giant Huawei, has the potential to increase share ownership in PT Bakrie Telecom Tbk (IDX: BTEL) due to the consequences of the company’s senior debt exchange worth US$380 million with mandatory convertible bonds, said the management on a press conference in Jakarta, Tuesday (07/9).
Bakrie Telecom director Aditya Irawan said the company is still in the process of negotiating with bondholders or referred to as Chapter 15 in New York United States. This is part of the company’s Postponement of Debt Payment Obligations which was also taken in Indonesia.
The company offers senior money holders with new senior notes consisting of 70 percent mandatory conversion bonds, and 30 percent cash portion which is the last stage of the restructuring process.
“Approval for this exchange can be completed in the fourth quarter of 2019 or the first quarter of 2020,” he said.
While the conversion period of mandatory convertible bonds has a deadline of up to 2024. The total convertible bonds issued by the company reached 45 percent of the company’s total issued and fully paid shares.
“If all money orders convert 45 percent, including Huawei in it, Huawei will become 9 percent. The number of senior notes is equivalent to 23 percent, the other is another mandatory convertible bondholder. the biggest is still Huawei, “he explained.
For information, Bakrie Telecom released guaranteed senior notes of $250 million with interest of 11.5 percent on May 7, 2010. Then, the company issued another senior note of $130 million.
Meanwhile, as of March 31, 2019, PT Huawei Tech Investment controlled 16.83 percent of Bakrie Telecom’s shares. While the list of other shareholders is PT Mahindo Agung Sentosa 13.60 percent, PT Era Bhakti Persada 5.47 percent, Raiffeisen Bank International 6.02 percent, PT Bakrie Brothers Tbk 0.12 percent, and the public 57.96 percent.
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