Bakrie Bros shareholders approve Rp40.1 trln rights issue plan

Jakarta (ANTARA News) - Diversified Indonesian business group PT Bakrie Brothers said Monday it has secured approval from its shareholders for the company's proposed rights issue of up to 81.2 billion shares.

Under the plan, every 20 shares will be entitled to subscribe for 119 new shares at 500 rupiah each. The company aims to raise 40.1 trillion rupiah from the rights issue.

Bakrie Brothers said it expects the rights issue to be completed by April 22.

The company earlier said it will use proceeds from the rights issue to partly finance its planned acquisition of a 35 percent stake in coal giant PT Bumi Resources, a 40 percent stake in oil and gas company PT Energi Mega and a 40 percent stake in property company PT Bakrieland Development.

The planned acquisitions will turn Bakrie Brothers into a strategic investment company.

Shareholders have also approved the appointment of Nalinkant Rathod as new company president, replacing Gafur Sulistyo Umar, Bakrie Brothers told Thomson Financial. (*) end