Victoria secures rights issue approval

JAKARTA: PT Bank Victoria International Tbk has secured an approval from its shareholders to hold rights issue this week to scoop IDR199.44 billion.The approval was gained at extraordinary meeting of shareholders last week, Bank Victoria Corporate Secretary Susilawati told Bisnis yesterday.She explained that the company will issue 1.99 billion new shares at IDR100 per share at an preemptive rights issue. Every 200 old shares in the shareholders' list has the right for 85 preemptive rights issue.Such corporate action aims to foster working capital merely to realize business expansion. Besides having secured an approval from the shareholders, we have also obtained the effective notification from Capital Market and Financial Institution Watchdog [Bapepam LK].She explained that the bookbuilding period for preemptive rights issue will begin on 24 June 2011 while the negotiation starts on 27 June. We will not appoint any underwriter or standby buyer for such rights issue.Besides, the company will dispose 1.47 billion warrants of VI series to be issued along the ordinary shares, representing the return of preemptive rights issue. There are 63 warrants in every 85 new shares.The warrant is priced at IDR100, thus the potential proceed is IDR147.82 billion.As quoted from the companys official website, the old shareholders consist of PT Victoria Securitas (38.78%), PT Nata Patindo (4.25%) and PT Suryayudha Investindo (6.94%), Suzanna Tanojo (15.83%) and public (34.20%).Retained earningsThe shareholders also agreed not to distribute any dividend from 2010 earnings, reaching IDR106.8 billion merely to strengthen capital reserve, said Bank Victoria President Director Daroel O. Aboebakar.Such notion was decided during last weeks annual shareholder meeting. One of the decisions is we will not distribute any dividend this year.Referring to the shareholders' meeting, the retained earnings will be utilized to strengthen capital reserve merely to back this years credit expansion.This is in line with Bank Indonesias statement that urges banks to strengthen their capital, he said.Such shareholders meeting also approved appointment of two new directors, Gregorius Andrew Andriyanto Haswin, serving as Treasury Director and Ramon Marlon Runtu as Director of Credit.Yesterday, stocks of Bank Victoria were closed at IDR161 or rose by IDR6 from the day earlier. (T02/NOM)