JAKARTA - PT Magna Investama Mandiri Tbk (MGNA) will sell its land and rice mill in Ngawi, East Java to PT Wilmar Padi Indonesia for Rp 120.47 billion, due to the decline in the company's profit margin after the government set the Maximum Retail Price (HET) for rice at Rp 12,800 per kg.
As quoted from the company's disclosure, the land and rice mill has been managed by its subsidiary, PT Padi Unggul Indonesia. The land is 107,623 m2 wide with a number of buildings on it, among others, weighbridge houses, dyeing factories, milling plants, rice warehouses, rice bran warehouses, and spare parts warehouses.
After the sale, the company's liabilities will decline to Rp 107.98 billion, consisting of third party bank loans (Rp 86.97 billion), related party bank loans (Rp 20 billion), and others (Rp 1 billion). MGNA's equity will also increase. The value of land and building assets is around 539.35% of the company's equity.
As of 31 October 2019, MGNA's authorized capital was recorded at Rp 400 billion. The company's shareholders including Nobhil Capital Corporation (17.94%), S Debt Agri Resources Pte Ltd (16.95%), PT GMT Investama Mandiri (7.03%), Mutual Funds Pacific Equity Growth Fund (5.98%), and the public (each below 5%) (52.10%). (LK/AR)