Marga Abhinaya Abadi Tbk (MABA) is planning to buy 98.34 percent of Anugerah Berkah Madani (ABMA) from Saligading Bersama worth IDR 2.7 trillion. The company will issue new shares with a rights issue to finance the acquisition.
This is an affiliate transaction because Saligading Bersama is the main shareholder of MABA with ownership of 79.20 percent. Saligading will take all rights issue by submitting all of its shares in ABMA.
The management said the company will issue a maximum of 15 billion new shares with a nominal value of IDR 100 per share. The plan to increase capital through this rights issue reaches 253.16 percent of the issued and fully paid capital. The transaction will result in stake dilution with the maximum of 71.68 percent.
“The proceeds will be used for the acquisition of 98.34 percent from Saligading,” said the management, in a written statement. The company will seek shareholder approval regarding this corporate action in EGM in October 2017.
MABA assessed that through this acquisition, the company can consolidate the hotels and restaurants business with ABMA’s business in the construction and development of real estate, apartments, offices, and shopping centers. “The consolidation is expected to increase its value from the increase in property assets value and the projected recurring income growth of hotels and restaurants,” said the management.
MABA and its subsidiaries have three hotels that have operated, namely Ammi Cepu, Allium Tangerang, and Allium Cepu. The company is building Arum Cepu hotel and planning to add two hotels in Medan and Yogyakarta. Through its subsidiary, PT Dream Food, the company owns Rantang Ibu restaurant in Kebayoran Baru, Jakarta which has been operating and planning to open another branch in Pasar Minggu, Jakarta.
Through three subsidiaries, ABMA controls 48 ha of land located in South Jakarta, Tangerang, and Surabaya. The land will be utilized as a superblock project consisting of apartments, offices, function hall, commercial properties, and hotels.
On Tuesday (12/9), MABA rose 24.9 percent to IDR 1,880. (*)