Indonesia’s Astra Agro to raise $298.2m from rights issue

Photo by Astra International

Palm oil plantation company Astra Agro Lestari, controlled by Indonesia’s conglomerate group Astra International, is raising Rp4 trillion rupiah ($298.2 million) through a preemptive rights issue.

The company intends to issue 450 million units of new shares within a year following shareholder approval.

In a statement to the Indonesian Stock Exchange, the company said, it will use the rights issue proceeds to reduce interest burden, decrease gearing levels, strengthen its balance sheet and increase overall capital available for ongoing development.

Astra International, it said, has indicated an intention to subscribe for its proportionate entitlements representing 79.68 per cent of the new shares and act as standby purchaser for the remaining new shares not taken up under the rights issue.

The public currently holds 20.32 per cent of Astra Agro shares.

In the event where minority shareholders do not exercise their right to subscribe to the new shares, they will be subject to a decrease of their shareholding percentage from 20.32 per cent to 15.80 per cent.

Astra Agro recorded a marginally lower crude palm oil (CPO) production at 1.736 million tonne in 2015 compared to 1.743 million tonne in the previous year.

It posted net profit of Rp619.1 billion in 2015, down 75.2 per cent from previous year, in line with falling revenues. Its revenues reached Rp13.05 trillion, fell 19.9 per cent from previous year. Its bottomline was also eroded by a rise in foreign exchange loss to Rp580.36 billion from Rp126.6 billion in previous year.

Astra Agro manages a combined palm oil planted area of around 300,000 hectares in Sumatra, Kalimantan and Sulawesi. The majority of AALI’s CPO production was absorbed by the domestic market, while the remaining portion was exported mainly to India and China.

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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.