JAKARTA (TheInsiderStories) – The shareholders of Indonesian taxi operator, PT Express Transindo Utama Tbk (IDX:TAXI), agreed to converting debt worth of US$70.42 million with 10 billion news shares, said an official statement on Monday (05/06).
Finance Director and Corporate Secretary TAXI Megawati Affan, said the conversion will be carried out in two stages. First phase will be converted debt of Rp400 billion to 4 billion shares and next phase will convert Rp600 billion bonds with as many as 6 billion shares due on Dec. 31, 2020.
“Referring to the prospectus released by the company regarding the private placement plan, the company will issue 10 billion new shares, equivalent to 466.07 percent of the issued and paid-up capital of the company,” she said after the shareholders meeting in Jakarta.
Affan explained, if the plan is running, the conversion of bonds to shares will be issued on May 15 and to be listed on the Indonesia Stock Exchange on May 23. After the debt to equity swap done, the existing shareholder, Rajawali Corpora shares will be diluted 17.81 percent and hold 65.09 percent, from previously around 78 percent.
Then, in the second phase, the principal will be amortized every three months in accordance with the amount of the sale of collateral, in the form of land and motorized vehicles, according to her.
However, if there are still remaining principal items that have not been paid to maturity, the rest will be converted into TAXI shares. While, if the sale of these assets exceeded Rp600 billion, then the funds will be returned to the bondholders, which is likely to be an incentive to them.
As known, the subsidiary of the Rajawali still has debt maturing on June 24, 2019 with total amount of Rp1 trillion, in which the bonds are listed on IDX on June 25, 2014 with an interest of 12.25 percent and are paid every three months.
However, TAXI has difficulties because it delayed the payment of the bond matured on Sept. 24, 2018. Due to the large debt, the credit rating agency PT Pemeringkat Efek Indonesia (PEFINDO) downgraded the company rating bond to D from BB-.
On Feb. 8, Express Transindo canceled a shareholders meeting because it did not meet the quorum. Then, on Feb. 18, the return meeting was canceled again and did not reach the quorum for the second times. Finally, the meeting was held on Monday, after meeting the shareholders quorum of 53.52 percent.
Express Transindo is one of the taxi operators in Indonesia which was established in 1989 and operates in the the Greater Jakarta areas. The issuer that has been on the market since Nov. 2, 2012 and has a fleet of nearly 10,000 vehicles as of September 2018.
The company’ main services are regular taxis with the Express and Eagle brand, Tiara Express premium taxis, Eagle High tourism buses, and value-added transportation business.
US$1 = Rp14,200
Written by Daniel Deha, Email: firstname.lastname@example.org