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Barito Pacific seeking strategic investors for Star Energy acquisition

Wayang Windu Unit II, West Java, Indonesia (source: Aecom)
Alexander Richter Alexander Richter 22 Mar 2018

As part of its efforts to raise sufficient funds for the acquisition of Indonesian Star Energy, PT Barito Pacific Tbk is preparing a roadshow to address potential strategic investors for the acquisition. The required funding is about $715 million.

Late last year, we reported on a right issues by PT Barito Pacific Tbk to raise sufficient funds for the acquisition of Star Energy in Indonesia.

Now the company is preparing to conduct roadshow to several countries. This is done to find strategic investors to support the Star Energy acquisition action. This is due to the deadline of BRPT in acquiring Star Energy getting closer.

Henky Susanto, Director of BRPT, said that it is currently determining which countries will be the destination of the roadshow. The goal is to attract strategic investors.

“Yes, [a roadshow] is being arranged,” Henky told Indonesian news outlet KONTAN this week. Currently, global conditions are also considered to support this action. Because, amid the current economic conditions, many global strategic investors are holding cash money. Investors are still considered wait and see to invest funds. Henky agreed, it would be a great opportunity for BRPT to be able to attract strategic investors.

Currently, global conditions are also considered to support this action. Because, amid the current economic conditions, many global strategic investors are holding cash money. Investors are still considered wait and see to invest funds.

Henky agreed, it would be a great opportunity for BRPT to be able to attract strategic investors. Barito Pacific will hold an Extraordinary General Meeting of Shareholders (AGM-LB) on April 11, 2018.

Agenda at this meeting is approval to conduct a rights issue , approval of changes in the company’s articles of association in connection with the implementation of the rights issue e and approval of the plan the company in the acquisition of 66.67% shares of Star Energy Group Holdings Pte Ltd which is included in material transactions.

In the rights issue action BRPT will release 5.6 billion shares. The target is a jumbo fund of US $ 1 billion. Star Energy’s own shares of 33.33% of the company’s shares have been purchased by BCPG Public Company Ltd. for US $ 357.5 million in June 2017.  The purchase leaves a 66.67% stake to be absorbed by BRPT. It is estimated, that the required funding for the acquisition is about US $ 715.11 million.

Source: Kontan