JAKARTA (TheInsiderStories) – Prajogo Pangestu increased ownership in the conglomerate company, PT Barito Pacific Tbk (IDX: BRPT) from 71.53 percent to 72.14 percent by converting its warrants. The entrepreneur who also serves as President Commissioner of the company has converted warrants of 3.69 billion shares or equivalent to Rp1.38 trillion (US$97.87 million). No further details the purposes of his action.
The warrants were obtained from a limited public offering by giving pre-emptive rights made by Barito in mid-2018. The exercise price of the warrants has been set at Rp372.8 per share for phase I and Rp 466 per share for phase II which will expire on June 30 2021.
Recently, Barito Pacific Tbk postponed a series of business plans due to the COVID-19 outbreak, said the director. The delay made an adjustment to this year’ capital expenditure, from initially US$525 million to $185 million.
Finance director, David Kosasih explained, the allocation for the chemical firm, PT Chandra Asri Petrochemical Tbk (IDX: CAPC) cuts from $430 million to $135 million and power producer, Star Energy Group Holdings Pte. Ltd., to $50 million from initially $80 million. Chandra Asri projects postponed to 2022 from previous targets finished in 2021 and Star Energy to 2021.
In the first quarter of 2020, Barito‘ revenues dropped 10.10 percent to $610.6 million, from last year worth of $679.24 million. EBITDA also fell 40.4 percent to $96 million and net profit of decreased 61.15 percent to $14.19 million compared to last year.
Presiden director, Agus Pangestu reported, the first quarter results reflected a challenging period from the world petrochemical industry, with a low margin driven by weak demand especially from China caused the pandemic. The decline in net income was largely due to the average selling price of petrochemical products, especially Olefins and Polyfelins lowered with relatively stable sales volumes.
in 2018, the company owned by Prajogo Pangestu has acquired 66,67 percent of Star Energy share, the largest geothermal power producer in Indonesia, for Rp7.4 trillion ($528.57 million). The acquisition of Singapore based energy company demonstrates the commitment and seriousness of the company in developing its business in the renewable energy resources.
Currently, Star Energy operates three geothermal power plants in West Java, and owns other oil and gas businesses. Power plants in Wayang Windu, Derajat and Salak in West Java have a total capacity of 875 megawatts. The company also aimed to add two more geothermal assets in Lampung and Halmahera in North Maluku.
In the same year, Star Energy led a consortium with two other Southeast Asian firms, AC Energy —a unit of Philippine banking and property giant Ayala Group—and Thai’ Electricity Generating Public Company (EGCO) has acquired a 370-megawatt power plant on Mount Salak in Bogor, West Java, and the 240-megawatt Darajat power plant in Garut, West Java with worth $2.3 billion from global energy giant Chevron Pacific Ltd.
The unit holds a 68.3 percent stake in the consortium, AC Energy controls 19.8 percent and EGCO 11.9 percent. To finance Wayang Windu project, Star Energy Geothermal Ltd. (SEG) issued green bond worth $580 million with a coupon rate of 6.75 percent with a 15-year tenure
Aside from Star Energy, Barito Pacific‘ crown jewel and its most precious business asset is Chandra Asri, the country’ biggest petrochemical producer. Its unit produces chemicals and plastic raw materials, including butadiene and polythene, used in packaging of electronics, cosmetic products, food and beverages.
The company was established on April 14, 1979 under the name of PT Bumi Raya Pura Mas Kalimantan. The company’ core businesses are power generation and petrochemical products. The group owns industrial assets in renewable and resource oriented sectors.
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