PT Banten Global Development (BGD), a new shareholder candidate of PT Bank Pundi Indonesia Tbk (BEKS), is planning to increase its ownership in BEKS to 60% within three phases. Public investors need to exercise their rights during two Limited Public Offerings (LPO) with Preemptive Rights if they do not want their share to be diluted.
In its acquisition plan document, BEKS said that PT Recapital Securities (RCS) promised to sell its preemptive rights to BGD during BEKS’ fourth and fifth Limited Public Offering when BGD’s shares reach 40%. In the last phase, BGD will purchase stocks owned by RCS and other stakeholders in order to hold 60% of BEKS’ shares. If public investors do not exercise their preemptive rights, BGD’s ownership in BEKS after three corporate actions may exceed 60%, although BGD does not become a standby buyer for public portion. BEKS is expected to have an effective statement on its fourth LPO by July 29, 2016 followed by the fifth one in November 2016 as well as the share sale and purchase transaction between BGD and RCS in February 2017.
However, this corporate action remains undecided. The acquisition document said acquisition will not be realized if permit or approval for acquiring Bank Pundi’s not-less-than 60% of issued and paid-up capital is not granted. The fourth and fifth LPO may be postponed as well. The company will conduct another Extraordinary General Meeting (EGM) of Stakeholders on July 21, 2016 after the EGM on July 11, 2016 did not reach quorum.
Meanwhile, BEKS’ stock price continued to decline due to profit taking and uncertainties of corporate action. On Friday’s trade closing (7/15), BEKS’ stock price sank 9.09% to Rp 90. A day earlier, BEKS’ stock price dropped 10% to Rp 99 per share after IDX put the stock into Unusual Market Activity. (*)
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