JAKARTA-Issuers led coal mining tycoon EGAT International Company Limited (EGATi), PT Adaro Energy Tbk. (ADRO) to sell the shares of PT Adaro Indonesia to SOEs Thailand.
Company Secretary Mahardika Putranto Adaro Energy, said the company has made additional sales limited effect on November 22, 2016. Sales of securities carried out at the company’s subsidiary PT Adaro Indonesia.
“Adaro Indonesia has been implementing changes to the articles of association in connection with the issuance of new shares amounting to 57 857 shares or 11.53% of the issued and paid-up,” he wrote in a disclosure to the Indonesia Stock Exchange, Tuesday (22/11/2016).
The entire shares of the rights issue would be absorbed by EGAT International Company Limited (EGATi), a company organized and existing under the laws of Thailand. This transaction has been effected by the already obtained approval from the Ministry of Energy and Mineral Resources (ESDM) Indonesia.
Fresh funds will be obtained from the rights issue of US $ 325 million paid out in stages. The funding will be used untuuk strengthen the financial condition of Adaro Indonesia.
In addition, the rights issue will strengthen the position of Adaro Indonesia with their strategic cooperation with EGATi, the planned purchase of coal produced by Adaro Indonesia within a period of 20 years. Coal will be used by power plants owned EGATi and affiliates.
EGATi is a subsidiary of Electricity Generating Authority of Thailand, a state-owned enterprise (SOE) Thailand engaged in the power generation sector.