PT Centratama Telekomunikasi Indonesia Tbk (CENT) plans to increase its capital by providing HMETD, or right issue, through up to 34 billion new shares with a nominal value of Rp100 per share.

According to the company's brief prospectus published on Thursday (4/2), the right issue plan could strengthen its capital structure to develop telecommunication tower, service, and business activities, which are part of the main business activities well as other uses that support business growth, so that it will have a positive effect on the company's financial condition.

Shareholders who do not exercise their rights would have their ownership diluted to a maximum of 52%.

To realize this corporate action, the company will ask for shareholders' approval by holding an Extraordinary General Meeting of Shareholders on March 15.

The company plans to use all of the net proceeds obtained from the right issue for working capital and capital expenditures and other uses to support its business growth.