JAKARTA (Yosefardi) – Plantation company PT Provident Agro Tbk (PALM) has gained approval from its shareholders on private placement proposal.
The company and a creditor, Deira Equity Ltd, had agreed on loan agreement signed in 2009, on which PALM has option to convert its debt into equity.
PALM will issue 79.56 million new shares or 10% of its enlarged capital, priced at Rp420 per share. The private placement is scheduled for June 30, 2014.
In June 4, 2014, PT Surya Agro Persada, unit of PALM, and OAM Asia Singapore Pte. Ltd had signed a conditional sales and purchase agreement. OAM Asia provided loan facility of Rp334 billion to Suryo Agro.