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Saratoga allocates capex of US$ 100 million

07 January 2019 05:33 AM  Company: PT. Saratoga Investama Sedaya Tbk [SRTG]
Rp. 3,850  -50 (-1.28%)

JAKARTA - PT Saratoga Investama Sedaya Tbk (SRTG) is optimistic that the 2019 performance will be better than the previous year following a US$ 100 million capital expenditure or capex allocation to boost performance.

Catharina Latjuba, Head of Corporate Communications at PT Saratoga Investama Sedaya Tbk, said that as an investment-active company, Saratoga will continue to look at existing investment opportunities. Saratoga will also continue to focus on three business fields, namely consumers, infrastructure and natural resources.

"Corporate actions such as business expansion or divestment are part of Saratoga's strategy," Catharina told Kontan.co.id last Friday.

SRTG allocates capex of US$ 100 million annually with various funding sources including internal cash and loans.

Based on the financial report in the third quarter of 2018, the SRTG still recorded a net loss of Rp 964.4 billion. Even though the same period the previous year, Saratoga recorded a net profit of Rp 2.8 trillion. "The share price of some of our portfolios declined, so we recorded book losses for the investment," Catharina said.

For this year Catharina does not want to answer the performance target. "Saratoga is optimistic that it will continue to be active in 2019," she answered briefly.

As for the continuation of the business of a subsidiary of PT Mitra Pinasthika Mustika Tbk (MPMX) in 2019, Saratoga's management assessed that MPMX has a good track record of performance and has the potential to continue to grow in the future. Therefore, at the end of last year, the SRTG announced a voluntary tender offer aimed at increasing MPMX's shareholding by as much as 10%.

"This step is a series of Saratoga's strategies to continue to increase the investment portfolio allocation in the consumer sector and currently the corporate action of Saratoga's voluntary tender is still in process," she said. (AM/LM)

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PT. Saratoga Investama Sedaya Tbk [SRTG]   Rp. 3,850   -50 (-1.28%)