JAKARTA. PT Wijaya Karya (Persero) Tbk (WIKA) has converted the debt of one of its subsidiaries, PT Wijaya Karya Industri Energi (WINNER), to extra capital, or debt-to-equity swap.

WINNER’s debts converted by WIKA is worth IDR 8.02 billion. This corporate action then increases WIKA’s portion in WINNER to IDR 50.92 billion or 44.18%.

Mahendra Vijaya, Corporate Secretary of WIKA, mentioned that said transaction is carried out in order to improve WINNER’s financial performance. “This transaction is expected to improve profit, liquidity, and solvability of WINNER,” he said in the official statement.

Prior to this debt swap, WIKA only directly controls 40% of WINNER, while the remaining 60% is controlled through PT Wijaya Karya Rekayasa Konstruksi (WRK). After this debt-to-equity swap, WRK’s portion in WINNER will be diluted to 55.82%.

According to IDNFinancials data, WIKA was closed 6 points or 6.06% lower to IDR 93 per share. since the beginning of this year, its price has shifted 86 points or 48.04% down. (KR/ZH)