Multistrada Arah Sarana, a major Indonesian producer of car and motorcycle tyres, plans to launch a rights issue to fund expansion of its tyre plants and increase natural rubber output capacity.
The company hopes to raise IDR 1.53 trillion ($168 million) through the sale of 3.06 billion new shares to existing shareholders, equivalent to 33.3% of total capital. It will seek shareholder approval at a meeting to be held on 30th December in Jakarta.
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Around 44% of new capital will go towards expanding cars and motorcycle tyre production, including new machinery and additional facilities. Up to 26% will be used to acquire a new 33,000 hectare rubber plantation in East Kalimantan. The remaining 30% will be used as working capital.
