Samko Timber Limited has entered into a sale and purchase agreement with Sampoerna Forestry Limited for the shares in PT Sumber Graha Sejahtera (PTSGS), Samko Trading (STPL), and Samko Forestry (SFPL) for a sale consideration of $5 million.
STPL and SFPL are wholly owned subsidiaries of the group, comprising 3,860,000 and 100,000 shares, respectively. Meanwhile, PTSGS is a 98.44% owned subsidiary of the group, which directly owns 17,253,487 shares.
According to the group, the proposed disposal constitutes a “major transaction” and is subject to the approval of its independent shareholders.
The disposal comes on the back of the group’s continuous declining performance. The group reported a net loss of IDR599 billion ($50.6 million) in 1HFY2024 as compared to a net loss of IDR232 billion in 1HFY2023.
As a result, the group says the proposed disposal is “part of the group’s efforts to divest its loss-making businesses contributing negatively to the bottom line of the group”.
On Sept 30, the group also entered into a sale and purchase agreement for the disposal of the Balaraja Factory, exclusive of the two-storey dormitory.
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Net proceeds from the disposal of its subsidiaries is expected to go towards the general working capital purposes, and a proposed cash distribution in connection with a proposed capital reduction, which is set to be announced by the group in due course.
On a pro forma basis, had the disposal been completed on June 30, the group’s 1HFY2024 net tangible assets (NTA) would have been IDR120.2 billion from a loss of IDR1,356 billion originally. Its NTA per share would have risen to IDR14 from a loss of IDR157 originally.
Had the disposal been completed on Jan 1, the group’s losses would have stood at IDR126.8 billion from IDR549.8 billion originally. Its loss per share would have stood at IDR15 from IDR64 originally.
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Shares in Samko Timber E6R closed flat at 0.2 cents on Oct 2.
