PT Solusi Bangun Indonesia Tbk (SMCB) plans to conduct its second limited public offering in the framework of Pre-emptive Rights or rights issue of up to 1.379 billion shares or 15.26% of the company's issued and fully paid-up capital.

Based on a brief prospectus published on Thursday (8/4), the company has set a rights issue offering at Rp 2,300 per share so that the amount of funds the company will receive is Rp3.173 trillion.

PT Semen Indonesia Industri Bangunan (SIIB), as the main shareholder, owns 7.533 billion shares or represents 98.31%, will not exercise its Pre-emptive Rights, and transfer its HMETD Taiheyo Cement Corporation (TCC). TCC will exercise all of the Preemptive Rights transferred by SIIB, totaling 1.356 billion shares.

Shareholders who do not exercise their Preemptive Rights will experience a decrease in the percentage of ownership (dilution) by 15.26%.

Meanwhile, the provisional schedule for the implementation is that the EGMS will be held on March 30, 2021, the rights issue registration statement will be effective on June 11, 2021, rights issue cum rights in the regular market, and negotiations on June 21, 2021, and the cash market June 23, 2021, ex-rights in the regular market and the market. negotiations on 22 June 2021 and the cash market 24 June 2021, the pre-emptive rights trading period 25 June-8 July 2021.

The company plans to use the proceeds from this corporate action to pay a portion of bank debt of around 96% and 4% for investment or capital expenditure.

The company has bank debt with a loan value as of December 31, 2020, of Rp 7.9 trillion, obtained from BNI, Bank CIMB Niaga, BTPN, DBS Indonesia, Bank Permata, CTBC Indonesia, Bank Permata Syariah, Maybank, and BNI. The amount of debt that will be repaid is around Rp 3 trillion and the remaining Rp 4.9 trillion.

The loan will mature in 2025, with a JIBOR of 3 months + 2% PA.