PTSGS, a wholly-owned subsidiary of Samko Timber E6R , has entered into a sale and purchase agreement for the disposal of Balaraja Factory with an unrelated third party for a purchase consideration of IDR105 billion ($8.9 million), according to a Sept 30 release.
Balaraja Factory comprises a one-storey detached plywood and other wood-products factory building and two-storey dormitory. The factory building has a land area of 86,511 sqm, while the dormitory stands at 253 sqm.
The dormitory is set to be sold separately.
The factory was purchased in 2008 by PTSGS and focused on the production of plywood, laminated veneer lumber wood panels and wood-based furniture.
Currently, the ownership of the Balaraja Factory is covered by ten certificates of the Rights to Build (Hak Guna Bangunan) with 30 to 38 years validity expiring between 2031 to 2038.
The purchase consideration is expected to be paid in two instalments. The first payment of IDR47 billion has been received by the group, while a second payment of IDR58 billion is expected to be paid by Dec 31.
The group says the purchase consideration of IDR105 billion represents 77% of the current market value of the factory.
The net proceeds of the proposed disposal is expected to be used for general working capital purposes, reads the release.
According to the group, the property is deemed as contributing minimal revenue for the group following efforts to move the group’s production lines in and facilities to its other factories in Jombang and Jember located in East Java.
See also: Broadway Industrial Group offer turns unconditional; offer will now close on Dec 23
On a pro forma basis, had the disposal been completed on Jan 1, Samko Timber would have reported a loss of IDR482.9 million instead of IDR549.8 million for 1HFY2024 ended June 30. Its loss per share would have been reduced to IDR56 from IDR64 originally.
Shares in Samko Timber closed flat at 0.2 cents on Sept 30.
