Samko Timber to raise US$21 Million

Samko Timber Ltd, controlled by Sampoerna Forestry and Aris Sunarko family, is proposing a renounceable underwritten rights issue of 449 million new shares at S$0.065 in a bid to raise US$21 million. 

Samko will use the proceeds to repay the outstanding loan of US$10 million of a US$35 million term loan from Credit Suisse and US$5 million credit facility from Credit Suisse obtained in 2007 and 2008.

Samko Timber controls 51% shares in PT Sumalindo Lestari Jaya (SULI), which reported net loss of Rp112.59 billion in Jan-Sep 2009 on squeezed margin. The company reported operating loss of Rp186 billion in the period against operating profit of Rp11.5 billion in the same period last year. SULI's sales revenue dropped 50% to Rp428 billion.

Tjiwi Kimia, controlled by Sinarmas Group, has just acquired 60% shares in PT Sumalindo Hutani for Rp7.2 billion. 

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