JAKARTA (TheInsiderStories) – Propery company owned by Indonesian tycoon, Hary Tanoesoedibjo, PT MNC Land Tbk (IDX: KPIG) plans to hold a private placement, by issues as much as 8.06 billion shares or represent 10 percent of all shares issued and fully paid. The funds will uses to develop Lido City in Bogor, West Java.
The company has not yet determined the price of the limited rights issue. “The price will be determined at a price that is considered good by the directors while adhering to the applicable laws and regulations, including provisions in the capital market,” wrote management at the prospectus released on Monday (07/06).
Referring to the stock price data as of last Friday, MNC Land‘ stock price closed stagnant at Rp112 a share and the average share price was at Rp111 per unit. With the assumption, the estimated private placement funds that can be pocketed by the developer is Rp895 billion (US$63.03 million).
This corporate action can be carried out for a maximum of two years from the date of the shareholders approval. The plan, the company will hold the shareholders meeting on August 11. “The company can invite strategic investors who are interested in investing their capital in the company,” the management added.
MNC Land also stated, with the issuance of a number of new shares in the context of the exercise of HMETD, the shareholders of the company would experience proportional dilution of share ownership in accordance with the number of new shares issued, which was a maximum of 9.09 percent.
At present the largest shares of the company are owned by the public 56.27 percent, the parent PT MNC Investama Tbk (IDX: BHIT) 16.83 percent, UOB Kay Hian Hong Kong Ltd., 16.01 percent, and HT Investments Development Ltd., 10.89 percent.
Tanoesudibjo and the Trump Foundation have planned the construction of luxury resorts and residences of Trump Residences in Lido City and Tabanan in Bali. The projects estimate to cost US $ 1.7 billion in three years.
“Upon completion, Trump Residences will be an unparalleled destination, displaying superior luxury that will enhance the ultimate lifestyle,” said Trump Organization executive vice president Donald Trump Jr. after the pre-launch of Trump Residences Indonesia in Jakarta last year.
The Trump Foundation chose Indonesia as one of the business expansions in Asia, he said, causing the country to have a natural market. In addition, he noted, the two parties have had a long relationship since 2015. Meanwhile, MNC Group‘ owner, Tanoesudibjo explained, financing projects funded by the group, including infrastructure projects such as the Bogor – Ciawi – Sukabumi toll road, railroad, and airport. If other funds are needed, he said, they will come from local banks.
Projects will be developed in stages over a three-year period. Initially, he said, the Group would build golf courses and country clubs in Lido and Tabanan. The Lido project in Sukabumi, Bogor has 10,000 hectares of land bank while in Bali around 1,000 hectares.
Around 350 hectares of MNC Lido City land, Tanoesudibjo said, would involve hotels, villas, golf courses, and country clubs. He added, “In Bali we have a similar project. We have 1,000 hectares of land bank there. “
Trump Organization is a global luxury real estate company and has projects in 14 countries around the world. While MNC Land was founded in 1990 by Tanoesudibjo and is engaged in property, hospitality and entertainment companies in Indonesia.
Property developers have built luxury commercial and residential properties such as Park Hyatt in Jakarta, Oakwood Hotel & One East Residence in Surabaya, The Westin Resort Nusa Dua & Bali International Convention Center and Lido Lake Resort.
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