Bumitama Agri intends to undertake an internal restructuring exercise, the company announced in a bourse filing.
As at Dec 14, PT Bumitama Gunajaya Agro (BGA) is 90% held by Bumitama Agri, with the remaining 10% held by PT Harita Jayaraya (HJR), an associate of the group’s controlling shareholders Lim Hariyanto Wijaya Sarwono and Lim Gunawan Hariyanto.
Meanwhile, PT Bumitama Sawit Lestari (BSL) is 95% held by Bumitama Agri, with the remaining 5% held by HJR.
Pursuant to the proposed restructuring, BGA will acquire 99.999% of BSL from Bumitama Agri and HJR for an for an aggregate consideration of IDR965 billion ($90.3 million) which will be satisfied by way of the issue and allotment of additional equity in BGA to each of the company and HJR.
In order to maintain the existing 90%:10% equity ratio of BGA, HJR will also subscribe for additional equity in BGA for an aggregate subscription price of IDR53.66 billion.
The proposed restructuring shall be conditional upon the approval from the Ministry of Law and Human Rights of Indonesia, the company said.
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With the proposed restructuring, Bumitama Agri will hold its equity interests in BSL through BGA instead of directly, while HJR will directly hold 0.001% of its equity interests in BSL as well as indirectly hold the rest of its equity interests in BSL through BGA.
Accordingly, HJR’s effective interest in BSL will increase to 10.002%. Correspondingly, Bumitama Agri’s effective interest in BSL will become 89.998%.
Shares in Bumitama Agri closed at an unchanged 60.5 cents on Dec 14.