JAKARTA - PT Supra Boga Lestari Tbk (RANC), the managing company of Ranch Market, is divesting its shares of 40% of PT Mars Multi Mandiri (MMM) to PT Anarawata Puspa Utama (APU) for IDR 145.78 billion. Its issuer is reportedly seen with bank debts of IDR 75 billion as of Q1 2024.

Hady Purnama, Director of RANC, mentioned that said divestment proceeds will be used to pay off some of bank loans, thus reducing interest expenses.

“The company’s performance is expected to improve as interest cost increases whilst still retaining adequate credit limit reserves for business development should be needed,” Purnama said in the information disclosure quoted Tuesday (2/7).

The value of divestment of 40% of shares is said to exceed MMM’s total equity of IDR 136.24 billion as of December 2023. RANC and APU are affiliated due to shared ultimate beneficial owner.

As of now, MMM reported authorised capital of IDR 53 billion, followed by issued and paid-up capital of also IDR 53 billion of 53,000 shares of IDR 1 million each.

MMM’s shareholders consist of PT Perada Swara Production (SWP) 35%, RANC 40%, and APU 25% of total issued and paid-up capital of MMM. After the divestment, MMM’s shareholders will consist of only PSP 35% and APU 65% of total issued and paid-up capital of the same amount.

As of Q1 2024, total equity of MMM was only IDR 1.32 trillion, while total assets were at IDR 1.32 trillion, and total liabilities were IDR 1.04 trillion. (LK/ZH)