Sri Pakash Lohia Conglomerate Acquires Gold Mining Company Worth IDR300 Billion

Konglomerat Sri Pakash Lohia. (Foto: Instagram @forbesindonesia)

JAKARTA - The producer of raw materials for the textile and packaging industry owned by the Sri Prakash Lohia conglomerate, PT Indo-Rama Synthetics Tbk, is 'in action' by acquiring a gold mining company.

Quoted from the information disclosure page of the Indonesia Stock Exchange (IDX), Thursday, March 4, the issuer coded INDR shares said that it had completed the acquisition transaction of 80 percent of the share ownership of PT Cikondang Kancana Prima (CKP), on February 24, 2021. CKP has gold mining assets.

This continues the signing of a conditional sale and purchase agreement for CKP shares from existing shareholders, as submitted to the public on December 28, 2020. Thus, CKP has officially become one of Indo Rama's business entities.

President Director of Indo-Rama Synthetics, Vishnu Swaroop Baldwa, said that the transaction did not have a material impact on the company's operational, legal, financial condition or business continuity.

Previously, Indo-Rama's management said this transaction cost up to IDR 300 billion. This amount includes Rp50 billion, which is granted as an interest-bearing loan to an affiliate of the selling shareholder. CKP is a gold mining and processing company located in Cianjur, West Java.

"This transaction is funded by retained earnings or internal funding," said Management of Indo Rama Synthetics.

Indo-Rama Synthetics is an affiliated company of Sri Prakash Lohia, Forbes' 5th richest person in Indonesia. Lohia is the founder of Indorama Corporation.

Forbes estimates his wealth to reach US $ 6.6 billion as of March 3, 2021. If converted to an exchange rate of Rp. 14,275, Lohia has a wealth of Rp. 94.22 trillion.