The Company Which Shares Are Owned By Senior Investor Lo Kheng Hong Will Release USD 270 Million Bonds

GT Radial tires. (Photo: Doc. Antara)

JAKARTA - Tire producer, PT. Gajah Tunggal Tbk plans to hold an Extraordinary General Meeting of Shareholders (EGMS) regarding the approval of the issuance of global bonds worth USD 270 million.

Quoted from the disclosure of information on the Indonesia Stock Exchange (IDX) website, Thursday, March 18, the company whose 5.06 percent of its shares are owned by veteran investor Lo Kheng Hong will again hold an EGMS on Thursday, March 25, 2021, at 14.00 Western Indonesia Time, at the 5th Floor Ballroom of Harris Vertu Harmoni Hotel.

"Considering the implementation of the First Extraordinary General Meeting of Shareholders of PT. Gajah Tunggal Tbk which was held on Monday, March 15, 2021, did not reach the attendance quorum for the first agenda item, the Board of Directors of the Company hereby invites the Shareholders of the Company to attend the Second EGMS," said Gajah Tunggal's management.

The agenda that will be discussed by the tire manufacturer with the IRC and GT Radial brands is about three things. First, the approval of the issuance of debt securities by GJTL with a principal amount of up to 270 million US dollars or in other currencies determined by the Board of Directors of the Company and will due in 2026 or another period determined by the Board of Directors of the Company.

Second, approval of the company's plan to guarantee all or most of the assets of the company and/or its subsidiaries, including giving approval in the company's capacity as shareholders to the Company's subsidiaries, namely PT. Filamendo Sakti and PT. Prima Sentra Megah to become a subsidiary guarantor.

Third, grant power and authority with substitution rights to the Company's Board of Directors to implement the aforementioned decisions, including but not limited to making or requesting that and signing all deeds, agreements, letters, and documents required.

The proceeds from the issuance of Bonds, after deducting all refinancing costs, will be used to pay off USD 250 million in senior secured notes with an interest rate of 8.375 percent which was issued by the company on August 10, 2017, and will be due on August 10, 2022.

For information, on March 15, 2021, Gajah Tunggal was supposed to hold an EGMS to discuss these three agendas. However, at that time the number who attended did not reach the quorum number.

At that time, the meeting attended and represented as many as 2,454,526,812 shares or valid voting rights or 70.443 percent of the total shares with valid voting rights that have been issued by the company.