Jakarta, hitclubapk3 Indonesia
—
PT
Danantara
Asset Management (Persero) injected IDR 4.93 trillion into PT Krakatau Steel (Persero) Tbk (
KRAS
) through a shareholder loan scheme (
shareholder loans
).
This injection of funds is part of the company’s restructuring program aimed at maintaining business continuity and strengthening the company’s liquidity.
Quoting the company’s report in the Indonesian Stock Exchange (BEI) Information Disclosure released on Tuesday (23/12), the company said this funding was needed to support steel business operations which were still facing performance pressure.
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“The background to the implementation of the transaction by the company is to meet working capital needs to maintain the continuity of the company’s business,” said the company report.
The total transaction value reached a maximum of IDR 4,935,055,000,000 or the equivalent of around US$295 million.
The funds consist of a working capital loan of IDR 4.18 trillion with a minimum tenor of five years and IDR 752.8 billion for funding the Voluntary Resignation Program (
golden handshake
) as well as restructuring the Krakatau Steel Pension Fund through a scheme
lump sum window
with a minimum term of six years.
The company explained that working capital funds will be used, among other things, to purchase raw materials for hot strip mill (HSM) and cold rolled coil (CRM) factories, as well as to support the fulfillment of raw materials for pipe factories.HSM operations are said to be a key factor because they determine Krakatau Steel’s steel production performance.
With funding support from PT Danantara Asset Management, KRAS targets strengthening liquidity so that operations run more optimally.
The company also hopes that this step can reduce production costs, increase production and sales volumes, and strengthen the competitiveness of national steel while reducing dependence on imported steel.
From a regulatory perspective, this transaction is categorized as a material transaction because the value exceeds 20 percent of the company’s equity.
However, Krakatau Steel is exempt from the obligation to seek approval from the GMS and use an independent appraiser because the transaction was carried out in the context of restructuring a government-controlled public company.
Company management also stated that this transaction did not contain a conflict of interest.The affiliate relationship occurs because Danantara is the majority shareholder of Krakatau Steel.
All material information related to the transaction has been disclosed to the public in accordance with applicable regulations.
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