JAKARTA (TheInsiderStories) – PT Prime Capital Asia, an investment company based in Indonesia, become the controlling shareholder of PT Mitra Investindo Tbk (IDX: MITI) after exercising their rights. The standby buyer for the rights issue absorbed 1.4 billion class b shares of the issuer.
In an official statement released today, the director, Diah Pertiwi Gandhi, said, after the transaction, Prime Capital holds 69.59 percent of the total issued shares. While, the existing shareholders Interra Resources Ltd., ownerships diluted from 48.87 percent to 11.10 percent and public to 14.21 percent.
Both companies related to the private equity firm, PT Saratoga Investama Swadaya Tbk (IDX: SRTG). After the transaction, Prime Capital will transfer PT Wasesa Line shares to Mitra Investindo, a company engaged in the domestic shipping business to transport people or offshore oil production activities.
The assets represent 99.81 percent of the company’ paid-up capital with estimating values Rp70 billion. The miner will pay the acquisition with the rights issue funds amounted to Rp143.23 billion. Then, Rp 15 billion will be used to purchase Prime Capital’ receivables from Wasesa Line and the rest for the working capital.
After becoming the controlling shareholder, the investment manager will conduct a tender offer for all shares in the company that are owned by the public. 59.99 percent shares of Prime Capital owned by Andreas Tjahjadi.
Since last year, the issuer has announced to hold a rights issue and a reverse stock split program as part of an effort amidst the heavy pressure on their businesses. For Class A shares, the reverse stock price set at Rp200 to Rp500 (US$0.036) a unit and Class B shares from Rp20 to Rp50 a share or with ratio of five old shares to two new shares.
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.
In 2015, Saratoga divested 23.3 percent of Seroja Investment, a group companies listed in Singapore Stock Exchange to Prime Asia for $8.65 million.
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