SP Corporation announced, on Jan 5, that it had entered into a termination and release agreement with PT. Indexim Coalindo (INDEXIM) and PT. Bukit Baiduri Energi (BBE) in relation to the coal allocation arrangements made previously.
The agreement was signed by SPRI Pte Ltd, a wholly-owned subsidiary of SP Corporation, on Dec 6, 2021.
Under the terms of the agreement, SPRI has agreed to accept US$122,918 ($166,590) as payment in lieu of delivery of the outstanding coal allocation of 122,918 MT due from INDEXIM as at Nov 30, 2021.
The payment was computed based on the rate of US$1 per MT.
According to SP Corporation, INDEXIM had been unable to fulfil the outstanding allocation of coal due to its tight schedules.
Upon payment, the previous coal agreements dated from May 2010 to January 2018, will cease to be effective.
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The entry and performance of the termination and release agreement is not expected to have any significant impact on the net tangible assets (NTA) per share and the earnings per share (EPS) of the company.
SP Corporation’s interim executive director, William Nursalim alias William Liem, is “deemed to be interested by virtue of the deemed interest which his immediate family holds in INDEXIM”.
“Peter Sung, the chairman of the Company, has disclosed that he is associated with person(s) deemed to have an interest in the termination and release agreement,” adds the group.
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The rest of the directors or controlling shareholders of the company have any direct or indirect interest in the termination and release agreement.
Shares in SP Corporation closed flat at 67 cents on Jan 5.
Photo: Stock image
