ENRG Energi Mega Persada Tbk

Energi Mega to Hold 26.183 Bn Rights Issue

StockWatch (Jakarta) - Oil and gas drilling company PT Energi Mega Persada Tbk (ENRG) is ready to hold the second rights issue of 26.183 billion shares at nominal and offering prices of IDR100 and IDR185 per share.

Energi Mega's management said in the rights issue prospectus issued today (Wednesday 25/11) in Jakarta that the company expects to attain additional capital of IDR4.843 trillion from this first rights issue.

According the management, every holder of 11 old shares who are registered by the recording date on January 11, 2010, will have the right to purchase 20 new shares.

Every 16 shares originating from the exercise of the rights will be attached with three warrants of series I that will be given to the shareholder free of charge. The total number of warrants I is 4.909 billion with exercise price of IDR190 per unit, so the company is expected to get additional capital of IDR932.779 billion from the warants.

Of the total rights issue proceeds, 20.95% will be used for acquiring Masela Block PSC from INPEX as the selling party, then 52.37% for repaying the company's debt, 9.43% for financing expenses and 17.26% for capital expenditure (capex).

PT Danatama Makmur and PT Madani Securities have been appointed as standby buyer, and the management will seek approval from the shareholders in the EGM that will be held on December 28, 2009