JAKARTA (Yosefardi) – Plantation company PT Provident Agro Tbk (PALM) has set exercise price of its 2.1 billion new shares offering (rights issue) at Rp420, to raise total proceeds of Rp887.04 billion.
The rights issue represents 30% of its enlarged capital. Each shareholder with 7 old shares, recorded at December 4, 2013, will be entitled to buy 3 new shares. Trading of rights is
scheduled for December 6-12, 2013.
The company will use Rp130 billion of rights issue proceeds to acquire palm oil plantation company through subsidiary, PT Mutiara Agam, and Rp180 billion for working capital.
The rest of proceeds will be used to settle part of liabilities related to the acquisition over PT Nusaraya Permai and PT Alam Permai, acquired in May 2012 transferred by PT Hamparan Karunia Nusantara to Provident Capital Indonesia.