ABM converts shareholders' loan to equity
Tuesday, July 3 2012 - 11:51 AM WIB
IDX-listed PT ABM Investama Tbk recently said in a statement submitted to the Indonesian stock exchange it has decided to extend its shareholders' loan facility agreement to subsidiaries PT Reswara Minergi Hartama, PT Sanggar Sarana Baja, PT Cipta Krida Bahari and PT Sumberdaya Sewatama.
"Such facilities were extended to the subsidiaries as part of subsidiaries' business growth and development, and these loans have been converted into equity as part of ABM Investama's participation in the subsidiaries," the company said.
The company said that considerations and backgrounds of the shareholder?s loans conversion to equity are to improve the capital structure of the affiliated companies to become stronger and healthier, by converting all or part of the shareholder?s loans into capital/shares contributions, "as stronger and healthier capital structure is expected to enhance the opportunity of the subsidiaries to expand their business."
Such transactions have been approved by the shareholders of each subsidiary during the company's Shareholders General Meeting on June 29, 2012 , and the current status is still in the process of registration to the Ministry of Justice.
The company didn't disclose the exact amount of the shareholders' loan to be converted to equity.
Editing by Er Audy Zandri