JAKARTA - PT Jhonlin Agro Lestari (JAL) and PT Jhonlin Agro Raya Tbk (JARR) will reportedly sign a merger agreement on November 24, 2023. The plan should be asked for approval by its shareholders during its Extraordinary General Meeting of Shareholders on October 13, 2023.

Based on the information disclosure quoted Friday (29/9), both companies are affiliated under the same shareholder, PT Eshan Agro Sentosa (EAS). Therefore, there will be no changes in the controlling shareholder position after this merger.

EAS owns 84.84% of JARR’s shares, followed by SBM of 0.08% and the public of 15.29%. Furthermore, it also claims 99.66% of JAL, leaving another 0.34% to PT Jhonlin Agro Mandiri (JAM).

After this merger, EAS will have 86.55% of JARR’s shares, while JAM has another 0.04%, and the public has 13.34%.

Then, post-merger, JARR will also issue 1.16 billion shares that will be proportionally distributed according to JAL’s stock ownership and the diluted portion of public’s shares in JARR of 12.73%. The conversion ratio of this merger is 1:12,884, meaning that for every JAL’s share, the shareholder will gain 12,884 units of JARR’s shares.

This merger is projected to increase JARR’s issued and paid-up capital to IDR 924.53 billion from the initial IDR 800 billion. As of June 2023, the valuation of JARR’s shares clocked up to IDR 2.14 trillion, whereas JAL’s shares were worth IDR 313.83 billion. (LK/ZH)