JAKARTA - PT Hassana Boga Sejahtera Tbk (NAYZ) will pay IDR 4.21 billion for the purchase of 6,135 m2 of land for the expansion of a baby food factory in Gunung Sindur, Bogor, West Java. The source of the funds came from the results of the initial public offering (IPO) which took place earlier this year (6/2).

In the disclosure of information cited on Thursday (25/5), NAYZ has allocated IDR 34.21 billion from the IPO proceeds to purchase land and build a baby food factory. The budget allocation for buying land is IDR 5.21 billion and capital expenditure is IDR 30 billion, which includes building costs of IDR 19 billion and IDR 10.99 billion for machinery. The land down payment has been paid to the seller in the amount of IDR 1 billion.

The purchase of land in Gunung Sindur is related to the existing four separate factories in Taman Tekno, Tangerang, which are considered inefficient. Land and factories in one location are expected to encourage company efficiency. (LK/LM)