Multistrada plans to seek US$175 million third-party loan

BI/bursa

By Irvin Avriano A.

Bisnis Indonesia

Multistrada plans to seek US$175 million third-party loan

JAKARTA: PT Multistrada Arah Sarana Tbk, a listed producer of the tire brands of Achilles, plans to seek third-party loans worth US$ 175 million or equivalent to Rp1, 62 trillion, to be used as investment and/or working capital.

Company, through its information disclosure on the PT Kustodian Sentral Efek Indonesia (KSEI) last weekend, plans to ask for approval of its shareholders to pledge assets in order to attract loans totaling IDR1.62 trillion rupiah.

Request approval will be submitted at a general meeting of shareholders on June 10. In 1stQ/2010, the company recorded net profit of IDR54.97 billion, up 2.997% from a net loss in the 1stQ/2009 as much as IDR1.89 billion.

"The funds will be used to purchase machinery and the company additional working capital to increase tire production capacity of 16,000 units per day to 28,500 units per day," quoted the information disclosure.

In a notice to the Indonesia Stock Exchange, the company also plans to increase production capacity of motorcycle tubles tires doubled from 8,000 unit to 16,000 units per day.

The company will share the investment credit in the program to increase capacity and working capital. The division is comprised of US$ 154.56 million for capacity extensions, and US$15 million this year and US$5 million next year for working capital.

Multistrada also intend to use internal funds for US$ 24.66 million for the expansion plan. The stcok issuer also acknowledges that the plan constitutes a material transaction because the value entered into the category of corporate action type.

To meet the rules of Bapepam-LK. IX.E.2, still from that disclosure, the company plans to request approval of shareholders in the EGM to approve the materials action plan.

The company predicts that increasing capacity can raise the company's net income from amounted IDR174.86 billion last year to IDR152.18 billion this year and amounted to IDR223.96 billion in the next year.

When asked for confirmation, Multistrada Director Sukarman, which is also the holder of 0.13% shares of the company, refused to comment on the plan. Mutistrada Finance Director Yohanes Ade Bunian Moniaga not reply to short messages which sent.

The financial statements at the end of March showed the company recorded net profit of IDR54.97 billion, an increase of 2.997% compared with the company booked a net loss in the first quarter of last year amounted to IDR1.89 billion.

The shareholders of the company at the end of last month consisting of PVP XVIII Pte Ltd 26.1%, Prudent Capital Ltd by 14.28%, The Bank of New York Melon at 7.29%, and the rest of the public shareholder.

The emitter's stock price closed corrected 3.77% to IDR255 level and form the stock coded MASA's market capitalization to IDR1.56 trillion.