JAKARTA (TheInsiderStories) – Private company, PT Prime Asia Capital has the potential to conduct a backdoor listing on the Indonesia Stock Exchange (IDX) after becoming the standby buyer of oil and gas firm, PT Mitra Investindo Tbk (IDX: MITI). Both companies related to the Indonesian tycoon, Edwin Soerdjaja, owner of Saratoga Group.
The miner plans to run a rights issue and a reverse stock split program as part of business development efforts amidst the heavy pressure on their businesses. The issuer aims to release as much as 2.86 billion new Class B shares. For Class A shares, the reverse stock from Rp200 (US$0.0013) to Rp500 a unit and for Class B shares from the originally nominal value Rp20 to Rp50 a share or with ratio of five old shares to two new shares for both stocks.
These two corporate actions will be requested for approval on Oct. 14. The shareholders of MITI are PT Surya Raya Guna Perkasa 2.13 percent and public investors 19.13 percent. Then Series B shares are hold by Interra Resources Ltd., 48.87 percent and public 29.87 percent.
The unit PT Saratoga Investama Sedaya Tbk (IDX: SRTG) will not absorb the new shares and will transfer its rights to Prime Asia Capital. After the rights issue, Interra’ portion in MITI lowering to 8.05 percent. The owner of Singapore’ Seroja Investment Ltd., will buys Interra’ rights through a shares injection of its utility boat shipping sector, PT Wasesa Line accompanied by the purchase of receivables worth of Rp15 billion or in total Rp85 billion.
At the same time, the buyer will also transfer 64.88 million of Wasesa shares to MITI or represent 99.81 percent of the company’ paid-up capital. In 2015, Saratoga divested 23.3 percent of Seroja Investment, a group companies listed in Singapore Stock Exchange to Prime Asia Capital for $8.65 million.
“Some details of the transaction in the restructuring scheme do not involve fresh funds at all and only inject existing assets. The plan also indirectly has the potential to turn Prime Capital into a public company through MITI without having to hold an IPO (initial public offering) or backdoor listing,” wrote Mirae Asset Sekuritas’ analysis.
Mitra Investindo was established on Sept. 16, 1993 under the name of PT Minsuco International Finance. The company is domiciled in Jakarta and active in mining, industry, agriculture, contractor, trading and services. Currently, the issuer is engaged in granite mining and oil and gas industry through investment in subsidiaries.
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