JAKARTA – PT Catur Sentosa Adiprana Tbk (CSAP) channels extra capital worth IDR 854.15 billion to its subsidiary, PT Catur Mitra Sejati Sentosa (CMSS), for opening a new Mitra10 outlet.

With this extra issued and paid-up capital, CMSS’s capital now rises to IDR 1.66 trillion. According to the information disclosure yesterday (3/8), the additional capital of CMSS is in line with the purpose of the capital increase with pre-emptive II, or also known as rights issue, held by CSAP last July.

Referring to the rights issue prospectus and official report of CSAP, the proceeds of this corporate action is, in fact, entirely allocated for CMSS. Approximately IDR 415 billion will be spent on land acquisition of 20,919 m2 and a Mitra10 store building of 22,070 m2 located in Cibubur, Bekasi.

Then, another IDR 350 billion will be used to open 6 new Mitra10 outlets at max in North Sumatra, Jambi, West Java, Banten, East Java, and Bali. Then, the remaining amount will be set aside for CMSS’s working capital, including increasing inventories and covering operational costs.

With this extra capital injection, the management of CSAP expects to improve capital structure, operational activities, and financial condition of CMSS. (ZH)