Indonesia: Bentoel Internasional to raise $1.06b via rights issue to repay debt

Photo By Bentoel Group

By Antonia Timmerman

April 18, 2016

Indonesian cigarette maker PT Bentoel Internasional Investama Tbk (RMBA), a member of British American Tobacco Group, is raising Rp 13.99 trillion ($1.06 billion) through the biggest rights issue deal this year. The proceeds will be used to pay off its debts to Rothmans Far east B.V amounting to Rp 12 trillion ($912 million).

Bentoel Internasional said it plans to issue 29.16 billions of new shares, or about 80.1% of the enlarged capital, at a price of Rp480 each. Under the scheme, a shareholder of 36 share units will be eligible for 145 Rights shares.

“The company’s majority shareholder British American Tobacco (BAT) Ltd is acting as standby buyer, and will purchase up to 4.2 billion new shares not taken up under the rights issue,” said the management of Bentoel Internasional in a statement on Monday.

Bentoel Internasional’s revenues climbed 16 per cent to Rp 16.81 trillion in 2015 from Rp 14.07 trillion in 2014, while net income improved from a loss of Rp 2.25 trillion to a smaller loss of Rp 1.64 trillion. The surge is propelled by the firm’s Dunhill Fine Cut Filter, which contributed Rp 5.6 trillion to the total revenue.

Bentoel Internasional is the fourth largest cigarette manufacturer in Indonesia with approximately 7% market share. The company manufactures and markets a diverse range of tobacco products – machine-made kretek, hand-made kretek and white cigarettes.

Last year, PT HM Sampoerna Tbk (HMSP) , a unit of US cigarette producer Philip Morris International Inc., raised Rp 20.34 trillion ($1.39 billion) from the sale of 264.2 million units of new shares or 7.50 per cent of the total paid-up capital through rights issue.

Also Read: Philip Morris’ Indonesian unit to raise $1.39b via rights issue

HM Sampoerna set its rights issue price at Rp 77,000 per share, at the top end of the offer price range Rp 65,000 to 77,000, according to a filing on Indonesia Stock Exchange.

The rights issue was launched aiming at increasing free-float shares as required by the Indonesian Stock Exchange (IDX). The exchange required all companies listed on the board to have a free-float shares of at least 7.5 percent by the end of January 2016. The rule has been effective since January 2014 but listed companies were given a two-year grace period to adjust with the new rule.

Goldman Sachs, JP Morgan, Citigroup, Credit Suisse and PT Mandiri Securities were joint bookrunners for the transaction and trading in the new shares.

Also Read:

Astra Agro gets shareholder approval for rights issue

Indonesia’s two lenders to raise funds via rights issue, bonds

Indonesia’s XL Axiata plans to raise funds via rights issue

Indonesia Dealbook: Pertamina mulls IPO of 3 units; Bank Sinarmas to sell 7.8% via rights issue

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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