JAKARTA. Shareholders of PT Smartfren Telecom Tbk (FREN) has declared not to participate in the its Capital Increase With Pre-emptive Rights V, also known as rights issue, which will be held this month.

Some of the shareholders that are said to refrain from participating in the upcoming rights issue include PT Global Nusa Data (GND) and PT Wahana Inti Nusantara (SIN). The portions of GND in the company is recorded at 23.79%, while SIN claims 14.52%.

“In regard to shareholders who will not fully exercise its pre-emptive rights, they will have their portions diluted,” said the management of FREN in the published prospectus.

The only shareholder stating its participation and exercising their full rights in the upcoming rights issue of FREN is PT Bali Media Telekomunikasi (BMT). For the record, BMT claims a total of 9.81% of FREN now.

As mentioned by IDNFinancials data before, FREN is planning to issue a maximum of 171.45 million new shares in the upcoming rights issue. Each share has a face value of IDR 50, and will also be offered for IDR 50 each.

With said offering price, FREN will potentially end up with IDR 8.57 trillion of fresh funds in this rights issue.

Next, the proceeds gained by FREN from this rights issue will be utilised for various needs, starting from paying off loans to creditors to extra capital for subsidiaries, as well as enhancing its own working capital. (KR/ZH)