Jakarta. Rimo International Lestari, a department store operator, is set to raise as much as Rp 8.1 trillion ($578 million) from selling new shares next month, which will be used to acquire property developer Hokindo Mediatama.
According to a prospectus released on Monday, the company is offering 30.6 billion new shares at a price of Rp 265 a piece in a pre-emptive rights issue, awaiting approval from Rimo's extraordinary shareholders meeting to be held this Wednesday.
Shareholders are entitled to 90 new shares for every share they own by Sept 14.
Singaporean investment firm Haven Capital will act as the standby buyer. Jakarta-based MarkAsia Strategic was appointed to advise on the sale, according to the prospectus.
About 75 percent of the proceeds will be used to buy out 99.998 percent of Hokindo Mediatama from Fajarindah Megah Perkasa, and the remaining funds will be used to inject more capital into the property company, according to the prospectus.
Analysts have speculated that the rights issuance and acquisition is part of plan to list Hokindo Mediatama on the local stock exchange without an initial public offering — a so-called backdoor listing — considering the quantity of the transaction.
Hokindo Mediatama's portfolio includes malls, apartments and residential blocks within integrated townships across Indonesia, such as Jakarta, Banten and Kalimantan.