JAKARTA – PT Kimia Farma (Persero) Tbk (KAEF) plans to accelerate the conversion of its Mandatory Convertible Bonds (OWK) I Year 2023 into 100% shares to secure working capital. This plan will be decided at the Bondholders General Meeting (RUPO) scheduled for next week.

In a disclosure on Wednesday (5/3), Ganti Winarno Putro, KAEF's GM Corporate Secretary, announced that the RUPO for OWK I Year 2023 will be held next week on March 18.

The company issued OWK I Year 2023 worth IDR 302.99 billion with an interest rate of 5% per annum. The bonds are set to mature on February 23, 2028.

The RUPO agenda includes a presentation from KAEF and approval regarding the company's unmet financial obligations, particularly the requirement to maintain a current assets to short-term liabilities ratio of no less than 100%, and the elimination of this financial covenant.

Additionally, the RUPO will seek approval to accelerate the conversion of OWK into 100% shares on 17 April 2025. It will also request approval to postpone the payment of OWK interest, due on 22 August 2025, to 22 August 2027, and waive any penalties related to the delay.

Previously, the company had cancelled the scheduled RUPO for OWK I Year 2023 on 18 February 2025.

As of Wednesday, KAEF shares opened at IDR 510, with the highest price reaching IDR 525 per share. On Tuesday (4/3), the company's share price fell by IDR 10 to IDR 520 per share, with a trading volume of 831,400 shares in 282 transactions worth IDR 435.38 million.

Over the past week, KAEF shares have dropped by 5.45% or IDR 30 to IDR 520. In the past month, the stock has declined by 9.57% or IDR 55, while over the past year, it has decreased by 28.28% or IDR 205. (LK/ZH)