JAKARTA (TheInsiderStories) – Sinar Mas Group has potential to increases telecommunication firm, PT Smartfren Telecom Tbk (IDX: FREN) shares through the bond conversion with worth of Rp8 trillion (US$544.22 million). The conglomeration company hold the mandatory convertible Bonds (MCB) and will converts into series C shares after obtaining shareholder approval last week.
In an official statement released on Saturday (08/15), the operator announced to convert the MCB issued in 2014 and 2017 into the company’ new Series C stocks. For the purposes, the company will issue a maximum of 80 billion shares from its portfolio.
As of March 31, 2020, the 2014′ Smartfren MCB-holders were PT Dian Swastatika Sentosa Tbk (IDX: DSSA), unit of of the Sinar Mas Group. Then, PT Dian Ciptamas Agung, Boquete Group SA, PT Nusantara Indah Cemerlang, PT Andalan Satria Permai, PT DSSE Energi Mas Utama, and Hilmas Coal Pte Ltd.
The value of the MCB reached Rp3 trillion. While, the 2017′ MCB-holders are Cascade Gold Ltd., Dian Swastatika, Boquete Group, and Nusantara Indah Cemerlang with total values of Rp5 trillion.
As of June 30 of this year, Smartfren‘ shareholder was PT Global Nusa Data at 36.6 percent, PT Wahana Inti Nusantara 22.3 percent, PT Bali Media Telecommunication 14.8 percent and the public 26.3 percent. Apart from the issuance of the MCB, the operator also often external funds from bank loans from China.
This year, the company through PT Smart Telecom secured loans from the China Development Bank worth RMB1.58 billion ($227.99 million). The signing of the loan was made on Jan. 21, 2020 with maturity until 2026. The provider prepared a capital expenditure of around $250 million in this year.
At the latest shareholders on Friday, Smartfren appointed former coordinating minister for economic affairs, Darmin Nasution, as President Commissioner. Previously, this position was occupied by Gandi Sulistyanto Soeherman.
US$1: Rp14,700, RMB6.93