JAKARTA. Sumitomo Mitsui Banking Corporation (SMBC) has stated its ability to take part in the new shares to be issued by PT Bank BTPN Tbk (BTPN) in the rights issue, and will be a standby buyer for new shares that are not taken up by other shareholders.

This commitment was conveyed by SMBC through an official letter at the beginning of December, as well as a deed of agreement to purchase the remaining rights issue shares which was signed on December 7, 2023 In the letter and agreement, SMBC as the parent of BTPN will carry out a proportional portion of its shares and become a standby buyer.

For the record, the number of shares to be issued by BTPN in this rights issue is 3.09 billion shares. This is equivalent to 27.75% of the company's issued and fully paid-up capital after the rights issue.

However, BTPN has not yet determined the implementation price and rights issue ratio which will be effective on February 26, 2024. At the Extraordinary General Meeting of Shareholders (GMS) last week (7/12), BTPN obtained approval from shareholders to carry out the rights issue.

Previously, the company had also said that the majority of the rights issue funds would be used for business expansion and investment, with an allocation portion of 62.4%. This expansion was carried out with the acquisition of PT Oto Multiartha (OTO) from PT Summit Auto Group, which is a subsidiary of Sumitomo Corporation and SMBC.

In addition, BTPN will also use around 37.2% of the proceeds from the rights issue for business expansion and investment by acquiring PT Summit Oto Finance (SOF). Then the remaining 0.4% will be used as the company's working capital. (KR/LM)