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Jakarta Post

Pelita Samudera Shipping gets green light for private placement to buy new vessel

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Tue, September 17, 2019   /   12:37 pm
Pelita Samudera Shipping gets green light for private placement to buy new vessel Workers handle container shipping activities at Pontianak Port, West Kalimantan, on April 10. (JP/Severianus Endi)

Shipping company PT Pelita Samudera Shipping has received a nod from its shareholders to carry out a private placement to fund the purchase of a new vessel as part of its expansion plan this year.

The publicly listed company is planning to buy a new handy size mother vessel worth US$7.52 million from Singapore-based Convivial Navigation Co Pte Ltd.

The company’s spokesperson Imelda Kiagoes told the press on Monday that 20 percent of the purchase would be funded by the company’s own money.

“The remaining 80 percent will be exchanged for 402.69 million of the company’s new shares issued through private placement,” she said in Jakarta, adding that the shares were equal to 8 percent of the company’s paid-up and issued capital, meaning Convivial Navigation would be a new shareholder in Pelita Samudera.

The company expects to raise Rp 84.97 billion ($6.05 million) from the private placement, as Imelda said the new shares would be priced at Rp 211 per share. The figure was much higher than the company's share price of Rp 175 per share on Monday trading.

Pelita Samudera’s director Yolanda Watulo said the company would go forward with the private placement this year as soon as it received permission from the Financial Services Authority (OJK).

President director Iriawan Ibarat, meanwhile, said the new vessel would be used to ship commodities like coal and steel for a potential new contract worth $3 million per year. However, he refused to go into detail as the contract has not been finalized.

The company also planned to buy four new sets of tug and barge vessels by the end of this year, director Harry Chan added, as it expected coal shipment demand to continue to increase despite tumbling coal prices.

“Countries like China and Vietnam are still putting in orders to ship coal given that many power plants in those countries are fueled by coal, so we still need to buy new vessels to fulfill those demands,” he said.

He said the company expected to need about $12 million to $14 million to buy the new vessels by the end of this year, which would be paid for with the company’s own funds and was included in its $61 million capital expenditure allocation for this year.