JAKARTA (TheInsiderStories) – The Bakrie Group’ unit, PT Darma Henwa Tbk (IDX: DEWA) seeks fresh funding by offered 5.87 billion of Series B shares through a private placement scheme with an exercise price of Rp60 a share. The mining firm is estimating to reap fresh funding up to Rp352.24 billion (US$24.98 million).
All the funds will be used by the issuer to pay their obligations to their lender and to improve its capital structure. Based on the financial report, the issuer has a maturing debt of$23.80 million to Highrank Investment Ltd in this year. The creditor has transferred of receivables dated on Nov. 4, 2019.
Highrank received the transfer letter from READ Finance Company Ltd., for the right to collect a total of $23.80 million from the company based on the debt recognition agreement dated Dec. 27, 2018. Then, the lender has submitted a demand of payment on July 14, 2020, to Darma Henwa caused not fulfilled its obligations, which should have been made on July 1, 2020.
On Sept. 21, 2020, the company and the creditor made a settlement agreement to convert all the principal debt into series B shares the issuer with an exchange rate 14,800 per US$1. The loans from Highrank had been used for the development of the Aceh project.
After the private placement, the shareholder of the miner are Goldwave Capital Limited 13.76 percent, Zurich Assets International Ltd., 9.06 percent, public 56 percent, and Highrank 21.18 percent. The existing shareholders will be diluting by 21.18 percent after the rights issue transaction.
Recently, Darma Henwa had signed a cooperation agreement with a tire company from China, Fujian Haian Rubber Co. Ltd., to increase the productivity of heavy equipment in mining operations. Vice president director of the company, Prabhakaran Balasubramanian, said this collaboration will last for five years.
In the tire management agreement, Fujian Haian Rubber through its local unit, PT Luan Tire Indonesia, will provide all tire needs for heavy equipment in the Darma Henwa coal project in Bengalon, East Kalimantan, Asam Asam and Satuni – Senakin in South Kalimantan.
Balasubramanian hopes that through this collaboration, Fujian Haian will provide standard tire costs and reduce Darma Henwa burden in tire management which reached 30 percent of the total cost. The mining company was established on Oct. 8, 1991.
In July 1996, the issuer changed its status from domestic company to foreign firm as Henry Walker Group Ltd., acquired its majority shares. In January 2005, the isser changed its name to PT HWE Indonesia and finally to Darma Henwa in 2006. The unit of Bakrie Group became a publicly listed company in 2007 by issued 3.15 billion shares on Indonesia Stock Exchange with the ticker code DEWA.
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