Explore EARTH ER Without Issuance of New Shares

Jakarta - PT Bumi Resources Tbk (BUMI) is processing the plan to issue new shares without preemptive rights (ER), which will be included in the agenda of the Extraordinary General Meeting on June 24, 2010.

"The plan to issue new shares without the ER has been submitted to Bapepam and BEI today," said SVP of Investor Relations at detikFinance EARTH Dileep Srivastava, Tuesday (25/05/2010).

Dileep also said the schedule changes and Annual General Meeting Extraordinary General Meeting of the originally scheduled June 22, 2010 have to be June 24, 2010.

AGM agenda include approval of financial statements in 2009 and its plan to distribute cash dividends in 2009. While the agenda of the Extraordinary General Meeting consisting of three agenda, namely:

1. Approval to pledge assets.
2. Approval of additional capital without ER.
3. Reappointment of directors of the company.


Dileep unfortunately can not disclose how much the new shares without a rights issue that will be published as well as the exercise price estimates.

"By statute, the new shares may be issued to non-ER 10%," he said.

EARTH current number of shares as much as 19.404 billion shares. Assuming a 10% EARTH will issue new shares without the ER, then the number of shares to be issued as much as 2.156 billion shares.

If the exercise price at Rp 2000-2100, then in fresh funds that will dirogoh EARTH reached Rp 4.3 to 4.5 trillion.

"We'll see. Formal announcement about the quantity and the price will dilakuka later," he said.

Plan to issue new shares without the ER is both denied the rumors saying EARTH will conduct a rights offering (issuance of new shares
ER).

Rumor rights issue has hit share prices fell yesterday on a trade EARTH. Naturally, the rights issue would require shareholder EARTH inject new funds in order to avoid large dilution.

While the issuance of new shares without shareholder ER EARTH mewaibkan not spend to raise capital. Although it will be diluted, but not great.

For according to Bapepam rules, any issuance of new shares without a maximum ER can be done as much as 10%. While the issuance of new shares with the share above 10%, must go through the rights issue mechanism

source....www.detik.com