Indonesia: Pool Advista $30m rights issue, Equity Development ups stake in unit, Graha Prima cuts offering to $49m

Photo: Reuters

PT Pool Advista Indonesia Tbk (POOL) plans to raise Rp 393.7 billion or about $30 million through a rights issue, while cinema operator PT Graha Layar Prima Tbk (BLTZ) intends to cut its rights offering from Rp 850 billion ($62 million) to Rp 650 million ($49 million).

At the same time, PT Equity Development Investment Tbk (GSMF) has purchased 13.8 per cent stake in PT Equity Finance from Global Link Equity, increasing its ownership in the company to 99 per cent.

Pool Advista rights issue

Solution provider company Pool Advista said it will offer 1.5 billion shares at Rp 250 each. For every one share owned by a shareholder seven rights will be granted.

The funds, totaling Rp 393 billion, will be used for capital expenditure and acquisitions of two companies.

About Rp 342 billion (86 per cent) of the cash will be for the purchasing of 64.5 per cent of multi-finance company PT Indojasa Pratama Finance (IPC). And approximately Rp 88 billion (22.3 per cent) will be allocated for the acquisition of 99 per cent of asset management firm PT Kharisma Asset Management.

Pool Advista management said the strategic investment will strengthen the company’s financial performance as well as capital structure. It believes the financial sector will continue to grow in the future.

“Indonesia’s socio-political situations are relatively stable and we believe this can attract foreign capital inflow, especially to the stock market. The rising middle class is also expected to give more growth room to the sector,” the management said in a statement.

Pool Advista was founded in 1958 in Jakarta. Currently, it is engaged in the provision of consulting and investment management services. The company’s subsidiaries include PT Meganindo Intisakti, which is engaged in automotive repair and maintenance services, and PT Widya Dharma Artha, which is engaged in education services

Equity Development 

Equity Development has purchased 13.8 per cent stakes in Equity Finance from Global Link Equity for Rp 35.5 billion, which had been paid in cash.

“The transaction is part of our strategy to get a full control of Equity Finance, which we believe has an excellent performance and is expected to contribute to growth in the future,” said the company management.

Equity Development started operation in 1985 as an insurance, multi-finance, and venture capital firm.

During the first three months in 2016, the company posted a revenue of Rp 281 billion, or 15.9 per cent lower than the same period last year of Rp 334.4 billion. Net profit was also slashed by more than half to Rp 12.1 billion, from Rp 29 billion in the first quarter 2015.

By the end of last year, the company reported a profit of Rp 76 billion. However, it has decided not to distribute dividends to shareholders and to record the profit as retained earning to cover accumulated losses from the previous fiscal years.

Graha Prima cuts offering

Graha Prima, the operator of popular cinema CGV Blitz, has announced that it will cut its rights issue plan from $62 million to $49.4 million. It will offer 99 million of new shares or about 22.7 per cent of the enlarged capital at Rp 6,550 apiece.

Every 17 shares held by a shareholder is eligible for five rights that each can be used for buying one share.

The company’s prospectus announced that it planned to use Rp 250 billion from the rights issue to pay off its debts.

“The remainder will be used as capital expenditure to develop our business in several cities in Indonesia,” the statement reads.

Graha Prima’s major shareholders have expressed their commitments to execute their rights.

Established in 2016, Graha Layar Prima currently operates 16 cinemas, eight of which are located in Greater Jakarta, three in Bandung in West Java, two in Batam in Riau Islands and one each in Yogyakarta, Balikpapan in East Kalimantan and Cirebon.

The number of cinemas and screens it owns has been rising steadily. In 2004 it operated 142 cinemas with 458 screens, and was up to 325 cinemas with 1,037 screens by Dec. 23, 2013, Tourism and Creative Economy Ministry data shows.

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

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Singapore Reporter/s

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.