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KAEF and KFA to receive IDR 1.86 trillion of investment from China and INA

14 November 2022 05:23

JAKARTA. PT Kimia Farma Tbk (KAEF) and its subsidiary, PT Kimia Farma Apotek (KFA), manage to secure an investment commitment from the sovereign wealth fund of China, Silk Road Fund (SRF), and Indonesia Investment Authority (INA) worth IDR 1.86 trillion.

Said investment has allowed both institutions to earn 40% of KFA's shares, although the final percentage will depend on the closing account mechanism applied in the financial report during the project completion. This collaboration is stated in the Conditional Share Subscription and Purchase Agreement and other related documents that have been officially signed by KAEF, KFA, SRF and INA.

David Utama, President Director of Kimia Farma, mentioned that the investor from China will grant Kimia Farma new market and network opportunities, both in retail and healthcare services, in the international scene. This investment will be utilised to fund the strategic business expansion of KFA, its working capital, and any initiatives to enhance operational efficiency of KFA.

"This investment will strengthen the company's capital structure and, consequently, improve the operational and financial performance that will lead to a better result," Utama further explained in a virtual press conference yesterday (13/11). As of now, KAEF manages 1,200 pharmacy outlets through KFA, 400 health clinics, and 80 units of blood testing laboratories across all regions in Indonesia. (AM/ZH)

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