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Surya Toto Indonesia converts the debt of its subsidiary into shares

22 September 2020 16:30

JAKARTA. PT Surya Toto Indonesia Tbk (TOTO) has converted PT Surya Pertiwi Nusantara (SPN)'s debt into shares.

Setia Budi Purwadi, Corporate Secretary of TOTO, explained that the value of the debt was Rp136.87 billion. The debt was converted into 147,000 shares with a nominal value of Rp1 million per share.

This step was made after SPN declared that it was no longer able to pay its debt to TOTO. Previously, SPN had just closed its second production line and a number of production facilities that had just been completed.

"By converting debt into paid-up capital, SPN's interest expense will be lower and it can help improve operational cash flow to maintain business sustainability," said Purwadi through a disclosure submitted to the Indonesia Stock Exchange.

For information, the transaction is considered as an affiliated transaction, since TOTO owns 49% of SPN shares. (KR/AR)

 
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