JAKARTA (TheInsiderStories) – The new investor will control PT Radana Bhaskara Finance Tbk (IDX: HDFA) after the rights issues program, it said today (08/15). Based on the disclosure information, the company offered 6.96 billion shares or 74.94 percent of the total issued and paid-up capital.
Radana is expecting to raise Rp696.57 billion (US$49.05 million) from the rights issue program on Sept. 25. Its holding PT Tiara Marga Trakindo (TMT) will execute 2.34 billion shares with bills worth of Rp212 billion and in cash.
While, PT Inti Investasi Prima, PT Eliora Lumina Indonesia, and PT HD Corpora as the other will not execute its right. The third parties will transfer 626.91 million shares to the new investor.
In total, the new investors will exercise 3.3 billion shares and also buy 480 million shares owned by TMT. With the exercise of rights in this right issue, third party investors will become the controlling shareholder of the company.
According to the plan, the company will distribute the rights on Sept. 13. While the exercise of the rights will be conducted on September 25, 2019. PT Surya Fajar Capital Tbk will be a financial advisor in the rights issue.
The current capital structure of the company is 70.78 percent owned by TMT, 21.72 percent by IIP and the rest by the public. After the rights issue, TMT share ownership will be reduced to 50.18 percent, the third investor will have 47.51 percent and public ownership will be delisted 2.31 percent.
The company said funds from the rights issue will be used for working capital. The company currently has a consumer financing business.
As for March 2019, Radana Finance posted a loss of Rp46.17 billion, inversely to the March 2018 period which had posted a profit of Rp3.93 billion.
The revenues also dropped significantly by 56.3 percent to Rp90.65 billion in March 2019. In March of 2018, the company’ revenues worth of Rp207.25 billion.
The decline mainly occurred in the consumer finance business. Revenues from its core business recorded Rp58.33 billion from the March 2018 Rp134.47 billion.
The company’ assets recorded Rp1.76 trillion, down 52.6 percent compared to March 2018. The decline also occurred in equity by 64.8 percent to Rp186.02 billion.
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