PT Darma Henwa Tbk (DEWA) will conduct a private placement to pay off maturing debts of US$ 23.80 million, or equivalent to IDR 352.24 billion at an exchange rate of IDR 14,800 per US$ 1. This plan will be decided at Extraordinary General Meeting of Shareholders (EGMS) whichon Friday (18/12).
From the company’s brief prospectus quoted on Thursday (17/12), the company would issue 5,870,821,080 Series B shares with an exercise price of IDR 60 per share. The fresh funds obtained from this corporate action amounted to IDR 352.24 billion.
By June 30, 2020, the company had US$ 23.80 million outstanding liability to Highrank Investment Limited (HI). The company’s total liabilities will decrease to US$ 288.42 million after this private placement.
For information, the settlement of maturing obligations will strengthen the business capital structure, namely, decreasing the ratio of debt to equity. Moreover, a reduction in financial costs will increase the company’s profitability and investment value of shareholders.