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Helping out its subsidiary, MKTR to channel IDR 242.25 billion

08 November 2022 08:43

JAKARTA – PT Menthobi Karyatama Raya Tbk (MKTR) will transfer IDR 242.25 billion to its subsidiary, PT Menthobi Makmur Lestari (MMAL), as extra capital. The money will then be utilised to develop a production supporting facility and fund the land condemnation for new palm plantation.

According to the short prospectus quoted Tuesday (8/11), the money for this corporate action will be taken out of the proceeds of MKTR’s initial public offering (IPO) of 2.5 billion shares of IDR 120 each last week, from November 1 to 4, 2022. The total proceeds are estimated to reach IDR 300 billion.

The management of MKTR allocates 4.99% of the proceeds to its working capital and advance another 95.01% or IDR 285.3 billion of the total IPO proceeds to its subsidiaries. PT Menthobi Hijau Lestari (MHL) will receive 6.67% of them or IDR 19.02 billion, while PT Menthobi Agro Raya (MAR) and PT Menthobi Transtitian Raya (MTR) will get another 1.67% or IDR 4.76 billion each. Lastly, MMAL will be the primary recipient, accepting 85% or IDR 242.50 billion of the total IPO proceeds.

MMAL will then use the newly secured fresh funds to establish a water management facility in the first half of 2023, acquire a land plot for plantation within its authorised area of 1,200 ha, maintain the condition of its crude palm oil refinery plant, purchase fresh fruit bunches and fertilisers, as well as settle some of its debts to the bank. (LK/ZH)

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