CLEO Will Inject IDR 180 Billion Funds To PT SPS

JAKARTA The steps of bottled drinking water producers (AMDK), PT Sariguna Primatirta Tbk (CLEO) to carry out vertical integration of the supply chain distribution business that has been running by PT Sentralsari Primasentosa (PT SPS) are increasingly real because they get the green light from shareholders.

In the Extraordinary General Meeting of Independent Shareholders (EGMS) CLEO has approved the planned acquisition of PT SPS on December 22, 2023, at Voza Office Tower, Surabaya.

For the acquisition to be made in the context of integrating the business, PT SPS will issue 100,000 new shares or the equivalent of 80 percent of share ownership in the fourth quarter of 2023, so that it can get an injection of fresh funds from CLEO of IDR 180 billion.

This acquisition transaction process has received a reasonable opinion (faimen's opinion) from the Independent Service Office. Fresh funds of IDR 180 billion at PT SPS will be used to add a fleet of distribution vehicles.

CEO of CLEO Melisa Patricia said that with the approval of this independent shareholder, the Company's strategic steps in the form of vertical integration of distribution business company PT SPS could be realized immediately.

"We hope that this integration step will be able to increase the efficiency and effectiveness of the Company's work, so that it will produce an acceleration of the Company's performance growth. Because apart from supporting the development of SPS's own business, this integration will automatically increase CLEO's ability to penetrate the market," he said in his official statement, Tuesday, December 26.

Meanwhile, PT SPS has 342 branches spread throughout Indonesia and is supported by thousands of fleets, and is a fast moving consumer goods (FMCG) distribution company, with its main product distributed, namely CLEO products throughout Indonesia.

Meanwhile, to meet requests from hotels, restaurants, and premium cafes, the Company has released its newest product, Cleo Platineaturing Water. Unlike the previous products, this new product is intended for the high-end consumer segment.

The market for premium class products is not as big as the middle and lower class. But we believe this new product will be successful, because the market for this segment continues to grow, especially in Surabaya, Jakarta, Bali and Lombok. This is in line with the increase in activities in the community such as business meetings, as well as in the hotel sector," said Melisa.

With the release of Cleo Plateoning Water's newest product, coupled with the seasonal cycle of sales increase related to the Christmas and New Year holidays, CLEO targets that performance growth in the fourth quarter will be better than the third quarter of 2023.