Surya Esa Perkasa injects new fund into subsidiary
Tuesday, May 28 2013 - 02:40 AM WIB
IDX-listed PT Surya Esa Perkasa Tbk has approved an equity injection of up to US$80 million into its subsidiary, PT Panca Amara Utama (PAU).
The decision was taken by shareholders during their annual general meeting for financial year 2012 on Monday, 27th May 2013, the company said in a press statement on Monday.
The company?s shareholders also approved the management?s proposal to allocate all net profit as retained earnings and to be used for development of LPG expansion and its subsidiary, PAU.
The management informed shareholders that the plans to expand LPG production by 55 percent has commenced, with an equipment and services agreement with Enerflex Ltd., of Canada.
The total capital expenditure (Capex) for expansion is estimated to be US$ 21 million, with production expected to increase from 120 tons per day (TPD) to 185 TPD starting in the third quarter of 2014.
The company?s subsidiary, PAU, is now entering the final stage of achieving financial closure. PAU has completed negotiations with gas suppliers for its gas sales agreement (GSA), and expects the GSA to be signed within the second quarter of 2013.
In line with PAU?s quick development progress, the company will be required to inject up to US$ 80 million equity into PAU within the year.
PAU has commenced building its 700,000 MT per year ammonia facility, and is expected to begin commercial production in the third quarter of 2015.
With an estimated project cost of US$ 750 million, the International Finance Corporation (IFC) is leading PAU?s US$ 500 million debt financing arrangement. Of the remaining US$ 250 million equity requirement, the company will be required to inject up to US$ 132 million.
Editing by Benget Besalicto Tnb.