JAKARTA (TheInsiderStories) - After raised Rp1.26 trillion (US$85.71 million) from rights issue of six billion Series B shares in September, now, PT Tiga Pilar Sejahtera Food Tbk (IDX: AISA), releases 2.38 billion Series B with an exercise price of Rp210 a share. The existing shareholders, PT Pangan Sejahtera Investama, will absorb the new shares with total amount Rp499 billion (US$33.94 million).
The payment of the new shares is scheduled on Nov 6, 2020. Then, the listing of new shares will be carried out on Nov. 9 and the announcement of the results of the private placement will be carried out on Nov. 10.
After the private placement, TPS Food‘ issued and paid-up capital, which initially was 4.78 billion shares, will rises to 7.16 billion shares. The snack producer is also exploring a number of new investors, both domestic and foreign, who intend to absorb some of the company’ new shares.
Proceeds from the rights issue will be used to improve the company’ financial condition and to pay their obligations. The issuer has an obligations to refinance SUKUK with a principal of Rp900 billion with interest rate of 10.25 percent. The manufacturer also has debt to Citibank Rp439.89 billion, JP Morgan Rp333.89 billion, and Standard Chartered Rp93 billion.
TPS Food serves many Asian markets and has another business unit in Indonesia through PT FKS Multi Agro Tbk (IDX: FISH). The chairman of the unit is Chandy Kusuma, son of FKS Group founder, Edy Kusuma.
Since 2017, the issuer had faced a financial problem, as there are allegedly double accountancy and data differences over the company’ financial report. The ministry of finance has summoned TPS Food management and the accountant office that audited the 2017 financial report, Amir Abadi Jusuf, Aryanto, Mawar & Partners, an affiliated audit firm and tax firm RSM International.
Ernst and Young found some differences between the internal data and financial records used by the auditors. It explains that there is allegedly Rp4 trillion overstatement on the accounts of receivable, inventories, and fixed assets in TPS Group. Moreover, there are Rp662 billion sales and Rp329 billion EBITDA overstatement on the subsidiaries.
The auditor also found Rp1.78 trillion funds flow through several schemes such as bank loan, time deposits withdrawal, funds transfer in the bank account, and financing of expenses of affiliated parties, from the Group to the former management. The company also faced several debt repayment obligations.
TPS Food has three postponement requests over the debt repayment obligations through its subsidiaries. On March 2019, they were asking for more delay due to this month on 8, 12, and 15 respectively. But its unclear how the debt payment continues. Currently, the AISA’ stocks have been suspended by Indonesia Stock Exchange since two years ago.
US$1: Rp14,700
Written by Editorial Staff, Email: theinsiderstories@gmail.com
