Company Update (NYSE:PM): Philip Morris International Inc.’s PT HM Sampoerna Announces Exercise Price of Rp. 77,000 for Rights Issue
Philip Morris International Inc. (NYSE:PM) announced thatPT HM Sampoerna Tbk. (“Sampoerna”), an indirect subsidiary of PMI in which PMI has to date held a 98.18% interest through PT Philip Morris Indonesia (“PMID”), today disclosed on its web site the pricing details for its ongoing rights issue (the “Rights Issue”). The purpose of the Rights Issue is to comply with the Indonesian Stock Exchange’s (“IDX”) mandatory requirement of a minimum threshold for public shareholding. Pursuant to IDX regulations, all listed public companies are required to have at least 7.5% of their total paid-up capital owned by the public (excluding controlling or principal shareholders) byJanuary 30, 2016. As advised by Sampoerna on its website, the exercise price for the rights has been set at Rp. 77,000, a 1.349% premium to the closing price on the IDX of Rp. 75,975 on September 30, 2015. In connection with the Rights Issue, PMID is selling 264,209,711 of the rights to which it is entitled in a placement to institutional investors; PMID is subscribing to the remaining 600,640 rights to which it is entitled. The placement price for the shares underlying PMID’s rights is the same as the exercise price for the rights. Delivery of the rights shares sold in the placement is expected to take place on or about October 26, 2015. The total net proceeds to Sampoerna from the Rights Issue, after deducting related commissions, professional fees and other transaction-related expenses, amount to approximately $1.4 billion*, which Sampoerna intends to use for general corporate purposes and working capital purposes, including the repayment of working capital facilities. After completion of the Rights Issue, PMID will own 92.50% of the issued and outstanding share capital of Sampoerna. (Original Source)
Shares of Philip Morris International closed yesterday at $79.33. PM has a 1-year high of $90.25 and a 1-year low of $75.27. The stock’s 50-day moving average is $79.73 and its 200-day moving average is $80.35.