JAKARTA. PT Indo Kordsa Tbk (BRAM), a tyre and polyester yarn manufacturer, has officially approved the merger between itself and its subsidiary, PT Indo Kordsa Polyester (IKP).

Reyva Fitri, Corporate Secretary of BRAM, confirmed that the merger between BRAM and IKP has been effective since January 1, 2023. In this merger, the company will act as the receiving party.

“It had been approved during the Extraordinary General Shareholders Meeting on December 19, 2022,” Fitri further stated in the official disclosure.

BRAM first announced this merger plan in October 2022. It is intended to enhance the efficiency of the company, which could be done through reducing the additional administrative fees and integrating the production process into one comprehensive chain.

The transaction value of this merger is said to reach IDR 646.25 billion, which has been deemed appropriate by the assigned Public Appraisal Service Office. (KR/ZH)