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KRAS channels USD 308.16 million to Krakatau Posco

01 December 2022 06:35

JAKARTA – PT Krakatau Steel (Persero) Tbk (KRAS) has raised its portion to 50% in PT Krakatau Posco (PTKP) following the latest additional capital investment of USD 308.16 million.

In the information disclosure quoted Thursday (1/12), Pria Utama, Corporate Secretary of KRAS, claimed that the capital investment to PTKP was given in the form of a Hot Strip Mill #2 production facility. “Posco Holding, the owner of 70% of PTKP, will have its portion diluted by 50% post transaction,” he added.

On the other hand, the handover of the factory as a capital investment will reduce KRAS’s debt payment obligation to PTKP worth USD 246.98 million regarding its Export Credit Agency (ECA) facility.

Furthermore, PTPK reportedly gave a compensation of USD 90 million in cash to KRAS, which will be used to restructure its business. (LK/ZH)

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