JAKARTA - PT Gajah Tunggal Tbk (GJTL) has acquired 92.9% stake at PT Filamendo Sakti, owned by PT Polychem Indonesia Tbk (ADMG).
The information disclosed at the Indonesian Stock Exchange (IDX) revealed that the acquisition was valued at Rp 4.55 billion. Previously the transaction was an affiliated transaction because Gajah Tunggal owns 25.56% stake at Polychem. The purchase agreement was signed on June 28, 2018.
Gajah Tunggal acquired Filamendo to ensure supplies and quality as well as lowering production costs to continue the vertical integration of production chain upstream.
Filamendo produces nylon 6 threads, the raw material of nylon 6 fabric.
GJTL Director Catharina Widjaja explained that in the company’s business restructuring in 2004, Filamendo shares could not be taken wholly, but GJTL has always routinely purchased threads from Filamendo.
“There is no big impact, only as a productive asset. And we’ve taken full control of them and if we ever need the availability can be ensured,” said Ms Widjaja at the Indonesia Stock Exchange, Tuesday (28/8).
On the plan to enlarge Filamendo’s business, Gajah Tunggal has not explained specifically. The tire company also does not have an acquisition plan in the coming months.
As for this year’s performance, GJTL is seeking a revenue increase by 5% to 10%. This is boosted by domestic sales and export. “Our export portion is 35% and we want to increase that to 40%. As for our domestic sales it’s 60%,” Ms Widjaja said.
The United States was the primary target in the first semester, although sales to the US declined 10%. (AM/MS)