JAKARTA - PT Waskita Beton Precast Tbk (WSBP) will convert a number of trade creditors' debts into equity of IDR 1.70 trillion. This corporate action plan will be carried out via private placement by issuing 34,144,421,770 new shares.

In the disclosure of information quoted on Monday (5/6), this plan is a continuation of homologation agreements with a number of trade creditors. The ratification awaits the approval of the Extraordinary General Meeting of Shareholders (EGMS) on (9/6).

Referring to December 2022 financial data, this issuer has a net working capital of IDR 4.28 trillion and total liabilities of IDR 8.06 trillion or around 135.27% of the company's total assets. This condition qualifies for holding a private placement because liabilities are above 80% of total assets.

Later, WSBP's total debt will decrease to IDR 4.22 trillion from IDR 8.06 trillion recorded in the December 2022 Financial Report. Short-term debt decreased to IDR 2.29 trillion from IDR 6.52 trillion, and equity increased IDR 4. 22 trillion to IDR 2.12 trillion from a minus IDR 2.10 trillion.

Ownership of PT Waskita Karya (Persero) Tbk (WSKT), as the parent of this issuer, will be diluted after the debt conversion plan. (LK/LM)