Jakarta, CNBC Indonesia – Last weekend before the turn of the month, two corporate actions caught the attention of the capital market, especially after trading on the Indonesia Stock Exchange (IDX) closed at 15.00 WIB, Friday (30/7/2021).
At that time, the Composite Stock Price Index (JCI) closed minus 0.83% at 6.070, with a transaction value of Rp 15.42 trillion with a trading volume of 22.86 billion shares.
The two corporate actions are PT Bank Central Asia Tbk (BBCA) which will conduct a stock split (stock split) with a ratio of 1:5 and PT XL Axiata Tbk (EXCL) which will buy the largest share of PT Link Net Tbk (LINK) from the Lippo Group.
For BCA, the goal stock split This is done by observing the development and dynamics of the domestic economy and market, including trading activities on the IDX.
“As a member of the stock exchange, we are also committed to encouraging the development of the country’s capital market, so the company decided to take a corporate action to split its outstanding shares (stock split) to provide wider opportunities for retail investors to invest in BCA shares,” he said. President Director of BCA Jahja Setiaatmadja, in a press release on Friday (30/7/2021).
The meeting of the Board of Directors and Commissioners of BCA on 29 July 2021 also approved the corporate action stock split with a ratio of 1:5 (1 old share to 5 new shares).
The par value per unit of BBCA share is currently IDR 62.50, while the par value per unit of BBCA share after stock split will be Rp 12.5.
“Through this corporate stock split, we hope that BBCA’s share price will be more affordable for retail investors, especially the demographic of young investors who are currently active in the stock exchange. This is also a form of our support to increase trading liquidity in the domestic capital market.” said Jahja.
Process stock split will comply with applicable regulations and require shareholder approval through the Extraordinary General Meeting of Shareholders which is planned to be held on September 23, 2021.
After obtaining approval from the shareholders, BCA will coordinate with the IDX to process stock split which is expected to occur in October 2021.
It was noted that at the close of trading at the end of July, BBCA’s shares stopped at Rp. 29,850/share, which means that investors had to disburse Rp. 2.9 million to buy 1 lot (100 units) of BBCA’s shares.
Later, afterstock split, BBCA will trade at around Rp 5,950/unit due to rounding down from Rp 5,970/share. This means that investors only need to spend as much as Rp. 597,000 to buy 100 BBCA shares.
Thus, BBCA prices will also be competitive with prices big four bank others such as PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) which traded at around Rp. 3,710/share, PT Bank Mandiri (Persero) Tbk BMR) at Rp. 5,700/share, and PT Bank Negara Indonesia (Persero) Tbk (BBNI) at a price of IDR 4,780/share.
IDX data noted that last Friday (30/7), the shares of the Djarum Group bank closed down 1.16% at Rp 29,850/share.
In the past week, BBCA shares fell 1.08%, in the last month they also fell 0.91% and year to date is still minus 11.82% with the largest market capitalization on the IDX at Rp 736 trillion. BBCA shares are traded with a PBV (price to book value) of 3.93 times and PER (price to earnings ratio) of 25.46 times.
EXCL
The management of PT XL Axiata Tbk (EXCL) said it would acquire 66.03% of Link Net’s shares which would be released by previous shareholders, including the Lippo Group.
After the sale and purchase transaction is carried out, as the new controlling shareholder, XL will conduct a mandatory tender offer to other shareholders.
XL is currently negotiating the proposed transaction. The company has signed term sheet which are not yet binding to take over 1,816,735,484 (66.03%) shares of LINK from the previous shareholders.
The takeover of shares is carried out in the context of business development as well as expanding the company’s network.
It is not stated how much the price per share will be redeemed, but assuming the average price of LINK on Friday (30/7) is Rp 4,588/share, the purchase could potentially reach the level of Rp 8 trillion.
“The purpose of the takeover plan is to develop business and expand business networks as well as to strengthen XL and Axiata’s business position in the field of providing telecommunications services to customers,” EXCL management wrote in the IDX information disclosure report, Friday (30/7/2021).
Previously, it was reported that the majority shareholder of Link Net intends to relinquish their ownership. The shareholders in question are the Lippo Group through PT First Media Tbk (KBLV) and global private equity firm CVC Capital Partners via Asia Link Dewa Pte.
“Currently, LINK is in the advanced stage of merger and acquisition or M&A with buyers,” said Marlo Budiman, EO and President Director of Link Net, to CNBC Indonesia, Wednesday (7/7/2021).
Marlo emphasized that the potential buyer was still in the Southeast Asia region, although he could not provide further details on the name. The number of potential investors has changed from last year when Marlo stated that there were four potential strategic investors.
According to Marlo, the consideration for the divestment of these shares is the desire of the shareholders.
CVC (Asia Link Dewa) owns 36.99% of Link Net’s shares, while First Media owns Link Net’s shares of 29.04%.
IDX data noted, EXCL shares closed up 5.91% at Rp 2,690/share last Friday (30/7). EXCL shares are up 9.8% for the week and have edged up 1.8% in the past month. Year to date issuer’s shares telco owned by Axiata Berhad Malaysia, down 1.47%.
Meanwhile, LINK shares closed up 1.55% at Rp 4,600/share. A week the stock rose 9% and a month also rose 6%. Year to date LINK shares soared 91%.
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