Jun 6, 2011

Sumalindo to sell Kalimantan Powerindo

Indonesia’s listed processed wood producer, PT Sumalindo Lestari Jaya Tbk, plans to dispose up to 70% stocks in its subsidiary, PT Kalimantan Powerindo to particular strategic investors.
Such divestment plan aims to develop business potential of power generator unit being run by the subsidiary, said Sumalindo Corporate Secretary Hasnawiyah Kono.
Further she explained that the company shall seek the approval during annual meeting of shareholders as it shall also send a notification letter to Capital Market and Financial Institution Watchdog (Bapepam-LK) this week.
“Such transaction is barely a material and affiliated transaction and we shall seek the approval in the annual shareholders meeting. We will also send a notification letter to regulator,” he said as reported by Bisnis Indonesia today.
Kalimantan Powerindo is the subsidiary of Sumalindo, focusing on power generator unit.
The company has commercially operated since 2007 in East Borneo. Sumalindo controls 99.9% stocks of Kalimantan Powerindo while the remaining stock is owned by partners.
Hasnawiyah further disclosed Kalimantan Powerindo’s book value, reaching Rp70 billion and the company shall dispose 62% of the maximum level (70%).
Such stock divestment is also in line with the financing needs required to further develop power generator unit that is run by the subsidiary.
“Thus, the transaction value is not a material transaction as the total book value is Rp70 billion. We partner with strategic investors, private ones as for the time being we have not been able to financially support our subsidiary whilst it requires a solid funding support,” he said. 

Disclosure: No position at the stock mentioned above.  

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