Govt approves Kimia Farma’s 20% rights issue

JAKARTA. State-owned publicly listed pharmaceutical firm PT Kimia Farma Tbk (KAEF) has secured approval from two ministries regarding a plan to offer 20 percent of its enlarged capital in a rights share offering.

Kimia Farma said in a stock exchange filing submitted Monday that Coordinating Economic Minister Hatta Rajasa, as chairman of the privatization committee, required a merger with another state-owned pharmaceutical firm PT Indofarma Tbk (INAF) before conducting the rights issue.

State-Owned Enterprises Minister Dahlan Iskan also approved Kimia Farma’s plan to offload up to 20 percent of new shares in a share offering, according to the file.

“The corporate action could be executed after a PP [government regulation] has been issued on the matter, but of course we need to file a proposal to be approved by [capital market regulator] Bapepam,” Kimia Farma’s statement reads.

Kimia Farma aimed to raise up to Rp 1.7 trillion from the issuance, offloading approximately 4.7 billion shares, the company said.

Shares of Kimia Farma traded at Rp 440 at 3:30 p.m. on Monday’s trading, unchanged from the previous day. (Esther Samboh/ The Jakarta Post)