JAKARTA. PT Argo Pantes Tbk (ARGO), a textile company under Argo Manunggal Group, has converted debts worth IDR 1.61 trillion to equity, issued through a capital increase without pre-emptive rights, also known as private placement.

This corporate action had obtained approval from the General Meeting of Shareholders of ARGO on June 19, 2023. As agreed, the company will issue 2.83 billion new shares of IDR 500 each, offered for IDR 570 per share.

There are 7 creditors of ARGO that will participate in this debt-to-equity conversion via private placement. They are PT Ragam Logam (35.3 million shares), PT Argo Manunggal Development (1.22 billion shares), PT Argo manunggal Triasta (394.65 million shares), PT Kukuh Manunggal Propertindo (510.17 million shares), Trevor Global Ltd. (622.81 million shares), PT Lawe Adyaprima Spinning Mills (34.72 million shares), and PT Daya Manunggal (11.29 million shares).

The management of ARGO confirmed that there are no changes in the company’s controlling shareholder position after this debt-to-equity conversion. “The controller and the final beneficiary is The Ning King,” the management stated in the official disclosure today.

According to IDNFinancials data, the debt-to-equity conversion of ARGO through this private placement leads to the dilution of public investors’ stock ownership. As of now, public investors are left with only 4.58% of the shares. “Therefore, the company will take actions to increase the public share so that we could attain the minimum free-float requirement,” the management of ARGO concluded. (KR/ZH)