JAKARTA (TheInsiderStories) - The International Finance Corporation (IFC) acted as a standby buyer of PT Adi Sarana Armada Tbk (IDX: ASSA) rights issue. The parent of courier service company, Anteraja, plans to increase its capital by issuing convertible bonds with total amount Rp720 billion (US$49.65 million).
President Director of the issuer, Armada Prodjo Sunarjanto, said on Tuesday (04/27), the number of shares to be issued for the corporate action was 600 million shares with an exercise price of Rp1,200 per share. The service provider offered every 453 old shares to receive 80 new shares.
According to the proposed schedule the zero coupon bond could converted into share in two years period until June 25, 2023. He said most of the proceeds will be used for debt refinancing the bank loans obtained in 2019. This loan was previously used for investment in Anteraja and the acquisition of PT JBA Indonesia, the automotive auction business provider.
“For the shareholders who do not exercise their rights, their share ownership will be diluted by a maximum of 15.01 percent,” said Sunarjanto in an official statement.
The remaining for working capital and will be used as a deposit for new business development of warehousing rental services, Titipaja. Adi Sarana will pay the principal value of the convertible bond plus the yield to maturity of 3.5 percent per annum and plus 1 percent of the principal values at maturity date.
Until the end of 2020, the logistic firm posted net revenues of Rp3.04 trillion, an increase of 30.12 percent from the end of 2019 which reached Rp2.33 trillion, supported by the stable performance of its business line. Anteraja contributed Rp794.72 billion to the total revenues in 2020 or growing 841.99 percent compared to a year ago Rp84.37 billion.
In this year, Adi Sarana prepared funds of Rp1.5 trillion for business expansion, especially buy a new fleets. The company is also targeting the revenues grow 25 percent on annual basis with the logistics sector as the main support. The car rental business are expected to grow around 15 percent in the same year.
However, he continued, the target really depends on economic growth after the government’ vaccination program. The proceeds from this corporate action will be use to expand their express couriers, through Anteraja and Titipaja in realizing e-fulfillment facilities towards end-to-end logistics.
Since last year, the subsidiary of Trakindo Group, has looking fresh funds to support the businesses. Sunarjanto said Adi Sarana plans to releases as much as 1.13 billion new shares.
US$1: Rp14,500
Written by Editorial Staff, Email: theinsiderstories@gmail.com
