Jakarta - PT Modern Internasional Tbk (MDRN) plans to increase its capital without pre-emptive rights or private placement by issuing 3 billion new shares.

In the prospectus published on Monday (15/11), this private placement plan is carried out to convert part of the company's debt to Sungkono Honoris into equity participation.

On January 2, 2020, the company and Sungkono Honoris signed an investment agreement, wherein Sungkono Honoris agreed to provide the company with an investment of Rp146.12 billion.

Based on the company's financial statements ending December 31, 2019, the company still has a loan to Sungkono Honoris amounting to Rp5.16 billion.

Then, during 2020 there was a payment from the company to Sungkono of Rp1.21 billion, so that the total balance of the loan value on December 31, 2020, reached Rp150.07 billion.

After the proposed transaction becomes effective, Sungkono Honoris's share ownership in the compan