JAKARTA. PT Waskita Toll Road (WTR), a subsidiary of PT Waskita Karya (Persero) Tbk (WSKT) engaged in toll road business, has converted the debt of its subsidiary, PT Waskita Bumi Wira (WBW), to extra equity (debt-to-equity swap).

This corporate action is carried out alongside the increase of issued and paid-up capital of WBW by IDR 1.72 trillion or 1,728,620 shares. “The entire shares are taken over by WTR with a debt-to-equity swap scheme in order to pay off the principal of shareholder loan,” added the management of WSKT in the official statement.

After this debt-to-equity swap, WTR’s shares in WBW will rise to 99.94% from the previous 99.92%. In the meantime, PT Panca Wira Usaha Jawa Timur’s portion will be diluted to 0.06% from the initial 0.08%.

“We hope that this transaction may improve WBW’s capitalisation structure and hasten asset recycling process,” added the management of WSKT.

According to IDNFinancials data, WBW is a company that handles the construction and commercialisation of Krian-Legundi-Bunder-Manyar (KLBM) toll road. WBW is established, at first, as a joint venture by Waskita Group and Panca Wira Group, a holding entity owned by East Java regional government. (KR/ZH)