JAKARTA. PT Chandra Asri Petrochemical Tbk (TPIA) will conduct a merger with PT Styrindo Mono Indonesia (SMI), its subsidiary that has been running a styrene monomer manufacturing business in Indonesia since 1990.
TPIA's management said that the merger was expected to help create a more integrated petrochemical company. "This merger will create a company that is stronger and able to compete with major petrochemical players in the region," said the company's management through a disclosure published on the Indonesia Stock Exchange's website.
PT Barito Pacific Tbk (BRPT) is expected to control 41.88% of TPIA shares after the merger. Then SCG Chemical Company Limited is estimated to hold 30.57% of TPIA shares, followed by Prajogo Pangestu (15.07%), Marigold Resources Pte. Ltd. (4.75%), and the public (7.74%).
For information, TPIA owns 100% of SMI shares, with a total value of US$323.82 million or around Rp562.82 billion.
To continue the merger, TPIA and SMI will seek approval from their Extraordinary General Meeting of Shareholders (EGMS) on 7 December 2020. This merger is expected to be effective on 1 January 2021. (KR/AR)