JAKARTA - PT Megapolitan Developments Tbk (EMDE) sold 1.64 million m2 of land in Sukaraja, Bogor, West Java. The total planned transaction value is IDR 1.23 trillion.

Ouw Desiyanti, Corporate Secretary of EMDE said that the company had signed a conditional agreement with PT Ciputra Indah Griya Asri (CIGA) on July 9, 2024. "This transaction will increase liquidity, profitability, working capital and reduce the debt of the company and its subsidiaries," he said in a disclosure of information quoted Friday (19/7).

As of the first quarter of 2024, EMDE's short-term liabilities were IDR 1.12 trillion, up from December 2023 of IDR 1.10 trillion. Long-term liabilities IDR 1.06 trillion, up slightly from IDR 1.05 trillion.

The transaction value is equivalent to 91% of EMDE's total equity as of December 2023, valued at IDR 1.35 trillion. Thus, this plan will require shareholder approval on August 26, 2024.

EMDE's share capital was recorded at IDR 335 billion, additional paid-in capital IDR 126.05 billion, retained earnings IDR 888.34 billion, and non-controlling interests IDR 8.55 billion.

On the other hand, the asset sale transaction will reduce the number of land banks that EMDE can develop. (LK/LM)