PT Mitra Bakti UT, a provider of heavy equipment, obtained a loan facility of Rp 5 billion from PT United Tractors Tbk (UNTR). The company will use the loan as working capital.
Sara K Loebis, Corporate Secretary of PT United Tractors Tbk (UNTR), stated that on a business basis, this loan facility is more profitable to be distributed to Mitra Bakti rather than being stored in banks. "Loan interest rates are LPS+2% or revolving funds," she said as quoted in the company information disclosed on the IDX.
MBUT stock owned by Karya Bakti UT Foundation is 75% and the other 25%. Commissioners of the foundation who are directors at PT United Tractors are Edhie Sarwono and Imam Nurwahyu. (LK)
United Tractorshas also disbursed U$30 million in loans to its subsidiary, Pandu Engineering Tbk (UTE). The transaction took place on September 26, 2018.
"The loan will be used by UTE for working capital," said Sara, in an information disclosure at the Indonesia Stock Exchange (IDX), Friday (28/9).
The loan interest is 1% JIBOR if the loan is in rupiah, while 0.5% JIBOR is given if the loan is in US dollars. The nature of the loan is repetitive or revolving.
UNTR, which owns 99.9% stake in UTE, said that loans to these subsidiaries are more profitable.
UNTR's board of directors and commissioners stated that all information has been submitted. It was also emphasised that the transaction was not a conflict of interest transaction, as referred to in the Bapepam-LK regulation Number IX.E.1, therefore it did not require the approval of independent shareholders.
"This transaction is also not a material transaction, because the loan value does not meet the threshold stipulated in regulation IX.E.2 (regarding material transactions and changes in business activities)," she explained.
Thus, the transaction was only an affiliate transaction that requires reporting to the Financial Services Authority (OJK) as stipulated in regulation IX.E.1.
Source: IDN Financials
03 October 2018