Resources Global Development (SGX:V7R) said it did not participate in the rights issue of its Indonesian associate, Singaraja Putra (IDX:SINI), after failing to finalize financing arrangements before the subscription deadline, according to a Tuesday Singapore Exchange filing.
The company had previously secured shareholder approval for its unit, Batubara Development to subscribe for up to 111.8 million rights shares for about 558.9 billion Indonesian rupiah (around SG$40 million). However, it said funding from a combination of internal resources and external borrowings could not be finalized in time.
As a result, Batubara Development's stake in Singaraja Putra was diluted to about 6.2% from 15.49%, following the completion of the rights issue.