Aneka Tambang to use rights issue proceeds for financing East Halmahera FeNi smelter
JAKARTA (rambuenergy.com) – Nickel and gold miner PT Aneka Tambang Tbk (ANTM) said it will use the proceeds of its planned rights issue worth Rp5.3 trillion ($376.2 million) to fund its ongoing projects, including the East Halmahera Ferronickel (FeNi) smelter project in North Maluku.
The East Halmahera FeNi project is estimated to cost a total of $1.6 billion, including power plant, with production capacity of 27,000 tons of nickel per annum. The project’s construction has begun in 2011 and is expected to begin production later this year.
Aneka Tambang has said that it sell 14.12 billion units of new shares, or 59.7 percent of the company’s enlarged capital, at a price of Rp371 and Rp535 a share.
Under the proposed rights issue scheme, each 25 old shares (at recording date of Oct. 27), will have the right to purchase new shares between 26 and 37 units.
The company said almost all of the new shares or 99.99% will be used to help fund the company’s ongoing East Halmahera Ferronickel (FeNi) smelter project in North Maluku. The remaining small portion of the rights issue proceeds or 0.015 will be used for working capital.
The rights issue plan is pending on shareholders approval, scheduled for Oct. 7.
The company said the government, which currently holds 65% of Aneka Tambang shares will exercise its rights, while shareholders who decide not to exercise their rights will see their ownership dilutes by a maximum of 59.7%.
The company has earlier secured $650 million in syndicated loans from four banks: the country’s biggest lender by assets, PT Bank Mandiri (BMRI); PT Bank Rakyat Indonesia (BBRI); and foreign lenders Standard Chartered Bank and Sumitomo Mitsui Banking Corporation Ltd.
Aneka Tambang (Antam) is currently constructing other mineral processing plants, including Smelter Grade Alumina (SGA) refinery in Mempawah (West Kalimantan) with a planned production capacity of 1.2 million metric tons of SGA per annum. The project is estimated to kick off operation in 2017.
In the six months to June, Antam posted losses of Rp474 billion, compared to losses of Rp633 billion in the same period last year, while revenues reached Rp7.85 trillion in the period compared to Rp3.99 trillion in the same period last year. (*)