Shareholders approve Barito's bid to sell bonds to acquire stake in Tri Polyta

21-Jun-08

PT Barito Pacific, Indonesia's publicly listed ethylene maker has won approval from shareholders to sell US$200 million in bonds to its parent company. After the sales of the three-year bonds to Magna Resources, the proceeds will be used to acquire 75.95% stake in petrochemical producer PT Tri Polyta Indonesia. The company requires US$136.46 mln to acquire the 553.23 mln shares in Tri Polyta. The company estimates to complete the transaction by June 23. Barito is 52% owned by Magna, which is controlled by Indonesian tycoon Prajogo Pangestu. Barito will acquire 64.65% stake from Newport Global Investment Ltd. and 11.3% stake in Prajogo Pangestu. Proceeds from the bond issue will also be used to pay loans worth US$19.82 mln to Bank Mandiri, which has agreed to extend the loan maturity from October 2007 to 2016. Barito has also set aside US$125 mln from its internal cash to finance the construction of a butadiene cracker plant near the factory of its petrochemical subsidiary PT Chandra Asri in Cilegon, West Java.