April 23, 2013 / 8:46 AM / 5 years ago

Indonesia's Dyviacom seeks to raise $720 mln via rights offer

JAKARTA, April 23 (Reuters) - Indonesian Internet service firm PT Dyviacom Intrabumi aims to raise 7 trillion rupiah ($720.35 million) in a rights issue in June to buy shares in retailers, as it shifts to a consumer-focused business, it said in a statement on Tuesday.

The majority of the funds raised from the offering will be used to buy a 40 percent stake in Indonesia’s largest minimarket operator, PT Indomarco Prismatama, owner of the Indomaret brand, in a deal seen as a consolidation of assets by Indonesia’s Salim Group.

The Salim Group, which is headed by Indonesian billionaire Anthony Salim, has been on a consolidation mode in recent months following a $809 million stock and cash deal for its auto firm PT Indomobil Sukses Internasional in December.

The Jakarta-based company, which has a market capitalisation of only $11 million, also plans to buy a 35.8 percent stake in Indonesian retailer PT Fast Food Indonesia, the holder of the KFC brand in Indonesia, from PT Megah Eraraharja.

Additionally, the firm will buy a 31.5 percent stake in one of Indonesia’s leading breadmakers, PT Nippon Indosari Corpindo .

Dyviacom will sell 14 billion new shares in June, which will cause a 99 percent dilution for existing shareholders if they don’t participate in the plan. PT Terra Konsuma Investama and PT Buana Capital will act as standby buyers.

The stock exchange suspended Dyviacom’s shares on Monday after the stock rose as much as 142 percent last week. (Reporting by Fathiya Dahrul, Writing by Janeman Latul; Editing by Ken Wills)

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