Mitra announces plan to refinance debts

Ika Krismantari , The Jakarta Post , Jakarta | Thu, 09/18/2008 10:31 AM | Business

Publicly listed transportation company PT Mitra Rajasa is mulling a rights issue and selling a stake in one of its units to refinance debts resulting from its acquisition of oil drilling services provider PT Apexindo Pratama Duta.

President commissioner Tito Sulistio unveiled the plan after a shareholder meeting Wednesday, adding the firm planned to act on the rights issue this year, as well as launch an initial public offering (IPO) in one of its units next year, once it secures the relevant permits from the authorities.

Tito refused to elaborate further, saying the company was still in the process of securing a permit from stock market regulator BAPEPAM.

However, he said the IPO would be held for either the MIRA International Holding unit or the Sabre System International unit.

Mitra recently acquired an 80.6 percent stake in Apexindo for US$565.1 million in external funding.

It has secured a loan of $550.5 million from U.S.-based investment bank Goldman Sachs, but only $408 million may be used to finance the acquisition.

As part of efforts to plug the deficit caused by the acquisition, Mitra shareholders on Wednesday approved a management proposal to seek debts of up to Rp 1.2 trillion, instead of the initial plan of Rp 800 billion.

Finance director Inu Dewanto Koentjaraningrat said the debts would mostly take the form of exchangeable bonds and bank loans.

Tito also said Mitra would help Apexindo refinance its own debts, amounting to some $100 million.