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Hi Michael — very interesting … clearly very astute owner / operators. Quick question, not sure I follow how a divestiture in 2006, could make the SO increase? Thanks
Hi Luis! Great question. I was a little bit puzzled by this transaction as well.
To recap: Burgami sold its stake in Pakuwon to Raylight Investments. Both Burgami and Raylight were owned by Alexander Tedja.
I haven't been able to find any name connected to Raylight Investments. But it was incorporated in Singapore, and I believe that Irene Tedja now lives in Singapore. My interpretation is that Burgami was meant to represent Irene's stake in Pakuwon and that this stake was then transferred to Singapore. She now runs a family office and it looks like she has sold down her personal stake in Pakuwon.
Here is an explanation of the 2006 share count increase:
• Pakuwon listed in 1989 with 50 million shares.
• There was a rights issue in 1994 of 105 million shares.
• The 2006 financial statements shows that Pakuwon increased the capital stock by 247 million shares through a rights issue: "The stockholders decided to increase the subscribed and paid-up capital stock by 247 million shares without pre-emptive right to existing stockholdings."
• Also in 2006, a convertible increase the total share count by 877 million shares: "In 2006, Series A, B, D and E Bonds amounting to US$ 49,278,000 were converted to 876,577,000 shares in the Company." These convertible bonds were issued as part of a restructuring of long-term loans as the company was over-indebted following the Asian Financial Crisis.
Hi Michael — very interesting … clearly very astute owner / operators. Quick question, not sure I follow how a divestiture in 2006, could make the SO increase? Thanks
Hi Luis! Great question. I was a little bit puzzled by this transaction as well.
To recap: Burgami sold its stake in Pakuwon to Raylight Investments. Both Burgami and Raylight were owned by Alexander Tedja.
I haven't been able to find any name connected to Raylight Investments. But it was incorporated in Singapore, and I believe that Irene Tedja now lives in Singapore. My interpretation is that Burgami was meant to represent Irene's stake in Pakuwon and that this stake was then transferred to Singapore. She now runs a family office and it looks like she has sold down her personal stake in Pakuwon.
Here is an explanation of the 2006 share count increase:
• Pakuwon listed in 1989 with 50 million shares.
• There was a rights issue in 1994 of 105 million shares.
• The 2006 financial statements shows that Pakuwon increased the capital stock by 247 million shares through a rights issue: "The stockholders decided to increase the subscribed and paid-up capital stock by 247 million shares without pre-emptive right to existing stockholdings."
• Also in 2006, a convertible increase the total share count by 877 million shares: "In 2006, Series A, B, D and E Bonds amounting to US$ 49,278,000 were converted to 876,577,000 shares in the Company." These convertible bonds were issued as part of a restructuring of long-term loans as the company was over-indebted following the Asian Financial Crisis.