JAKARTA. PT Waskita Beton Precast Tbk. (WSBP) plans a private placement, a capital raise without preemptive rights, by converting the debts of 261 vendors worth IDR 1.52 trillion to equity.

Asep Mudzakir, Director of Finance and Risk Maangement of WSBP, claimed that the debt conversion will take place in the second quarter (Q2) of 2023 or Q3 2023 at the latest.

According to Mudzakir, according to the homologated agreement, the conversion will take effect within the first year since the homologated agreement was announced official on September 20, 2022. According to the homologated scheme, PT Waskita Karya Tbk (WSKT) will have its portions diluted to 28%-33% within the first year, and to 16%-20% in the tenth year.

Mudzakir then revealed that or the first year, the debt-to-equity conversion scheme will be applied for vendors’ debts, whereas debts to bondholders and other financial creditors will be converted in the tenth year, after issuing the mandatory convertible bonds this upcoming June to replace those bonds. Mudzakir explained the system during the press conference of WSBP yesterday (27/3).

However, Mudzakir stated that, referring to what has been agreed by the creditors, WSKT will be granted special rights to ensure its position as the controlling shareholder of WSBP, despite its small ownership percentage of 16%. The private placement plan will be an agenda included in the General Shareholders Meeting scheduled on June 7, 2023. (AM/ZH)