JAKARTA (rambuenergy.com) – PT Astra Agro Lestari Tbk (AALI), a plam oil plantation company controlled by PT Astra International Tbk (ASII), announced on Thursday (Feb. 25) of its plan to issue 450 million units of new shares (rights issue) with an aim to raise Rp4 trillion rupiah ($298.2 million) fresh funds.
The rights issue plan is pending on approval of the company’s shareholders and Financial Service Authority. It however indicated that the rights issue will be completed in no later than 12 months after it receives approval from its shareholders.
In a statement to the Indonesian Stock Exchange, the company said it will use the rights issue proceeds partly to reduce interest costs, decrease gearing levels, thereby strengthening the Company’s balance sheet and increasing overall capital available for the ongoing development and operations of the company.
PT Astra International Tbk, it said, has indicated the intention to subscribe for its proportionate entitlements representing 79.68 percent of the New Shares and act as standby purchaser for the remaining New Shares not taken up under the Rights Issue. Currently, the public currently holds 20.32 percent of Astra Agro shares.
Assuming that Astra Agro’s public shareholders would not exercise their rights, then their ownership proportion will decline to 15.80 percent from 20.32 percent at present.
Last year, Astra Agro recorded crude palm oil (CPO) production of 1.736 million tons, little changed from previous year’s production of 1.743 million tons.
In 2015, Astra Agro’s fresh fruit bunch (FFB) production increased by 0.7 percent from 5.56 million tons in 2014 to 5.60 million tons in 2015.
Last year, the company’s CPO sales volume reached 1.04 million tons or decreased by 24.2 percent compared to the same period in previous year. This is due to some of Astra Agro’s CPO production were switched to refining products, mainly Olein and impacted to Olein sales which increased by 61.6 percent to 412,214 tons.
In the event the minority shareholders do not exercise their Rights and subscribe for their portion of the New Shares, they will be subject to a decrease of their shareholding percentage from 20.32 percent to 15.80%.
Astra Agro recorded crude palm oil (CPO) production of 1.736 million tons in 2015 compared to 1.743 million tons in previous year, edged lower 0.4 percent.
Last year, the company’s CPO sales volume reached 1.04 million tons or decreased by 24.2 percent compared to the same period in previous year.
It posted net profit of Rp619.1 billion in 2015, dropped 75.2% from previous year, in line with falling revenues. Its revenues reached Rp13.05 trillion, fell 19.9% from previous year. Its bottomline was also eroded by a rise in foreign exchange loss to Rp580.36 billion from Rp126.6 billion in prevous year. (*)