NEW YORK (Yosefardi) – Philip Morris International Inc. (PMI) announced Thursday that PT HM Sampoerna Tbk. (HMSP), an indirect subsidiary of PMI in which PMI has to date held a 98.18% interest through PT Philip Morris Indonesia (PMID), has set price of its rights issue at Rp77,000 per right.
The exercise price is a 1.349% premium to the closing price on the IDX of Rp75,975 on September 30, 2015.
In connection with the Rights Issue, PMID is selling 264,209,711 of the rights to which it is entitled in a placement to institutional investors. PMID is subscribing to the remaining 600,640 rights to which it is entitled.
The placement price for the shares underlying PMID’s rights is the same as the exercise price for the rights. Delivery of the rights shares sold in the placement is expected to take place on or about October 26, 2015.
The total net proceeds to Sampoerna from the Rights Issue, after deducting related commissions, professional fees and other transaction-related expenses, amount to approximately $1.4 billion, which Sampoerna intends to use for general corporate purposes and working capital purposes, including the repayment of working capital facilities.
After completion of the Rights Issue, PMID will own 92.50% of the issued and outstanding share capital of Sampoerna.
The purpose of the Rights Issue is to comply with the Indonesian Stock Exchange’s (IDX) mandatory requirement of a minimum threshold for public shareholding. Pursuant to IDX regulations, all listed public companies are required to have at least 7.5% of their total paid-up capital owned by the public (excluding controlling or principal shareholders) by January 30, 2016.