Why Prajogo Pangestu Keeps Releasing Shares in Chandra Asri?

Summary

Petrochemical company PT Chandra Asri Petrochemical Tbk (TPIA) has completed issuing new shares through a rights issue totaling US$1.1 billion or around Rp15.5 trillion. The Limited Public Offering III has obtained an effective statement from the Financial Services Authority (OJK). The standby buyer in this rights issue is PT TOP Investment Indonesia, a subsidiary of Thai Oil Public Company Limited (Thaioil), the refinery of PTT Public Company Limited (PTT).

Thaioil entry is part of the agreement between both parties. In July 2021, Chandra Asri and Thai Oil signed a deal with a transaction value of US$1.7 billion or Rp 24.65 trillion. In addition to being a strategic investor, Thai Oil will also invest in completing the Chandra Asri II petrochemical complex construction project in Cilegon, Banten, which costs around US$5 billion or Rp 72 trillion. "We welcome Thaioil as Chandra Asri's new major shareholder," the company's Director of Human Resources and Corporate Affairs Suryandi said on Wednesday (9/15).

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