JAKARTA. PT Terintis Properti Tbk's (TRIN) ownership in its subsidiary PT Triniti Dinamik (TD) has been diluted by 35.12% after TD increased its capital.
According to TRIN CEO Ishak Chandra, the company previously had a 53.37% stake in TD amounting to Rp 16.01 billion. Following the capital increase, TRIN's ownership in TD was diluted to 18.12% with a nominal value of Rp 27.43 billion.
"Starting from September 2020, TD's financial reports are no longer consolidated with those of the company in accordance with Financial Accounting Standards No. 15 on investment accounting in associated entities," Mr Chandra said in a stock exchange filing.
The capital increase, Mr Chandra said, occurred due to the conversion of TD's Rp 110.5 billion debt to its shareholders. In addition, the corporate action was also caused by the capitalisation of Rp 897 millon in shares and Rp 10 billion in interim profit.
However, TRIN acknowledged that the dilution of its stake in TD had a positive impact on its financial performance, including on its debt-to-equity ratio (DER), which is projected to be reduced by 1.04 times by the end of 2020, and the reduction of debt value by Rp 832 billion. (KR/MS)