Garudafood, Garuda Nuts Producer And Gery Chocolatos Owned By Sudhamek Agung Conglomerate Get IDR 200 Billion Loan From Prochiz Cheese

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - Prochiz cheese producer PT Mulia Boga Raya Tbk (KEJU) provided a loan to their parent company, PT Garudafood Putra Putri Jaya Tbk (GOOD) amounting to Rp200 billion.

Garudafood is the controlling shareholder in KEJU with a share percentage of 66 percent. In a management statement at the Indonesia Stock Exchange information disclosure, quoted on Saturday September, this transaction will be carried out under a revolving loan scheme for the term of the loan.

In addition, Garudafood receives an interest rate of 1 month JIBOR plus 1.3 percent a year. However, assuming that in one year is equal to 360 days.

As stipulated in the loan agreement between the company and KEJU dated August 23, 2021. Garudafood management said the transaction was carried out with the aim of providing financial support to the company owned by the conglomerate Sudhamek Agung Waspodo.

It is planned that the fresh funds will be used by management for working capital and other general corporate purposes. The producer of snacks such as Garuda nuts and Gery Chocolatos stated that the loan interest rate applied in this proposed transaction is below the market interest rate range from banks for similar loans.

Therefore, management assesses that this planned transaction will have an impact on reducing the cost of funds from the company so that it will increase the company's profits and profitability as well as solvency. In the end, the transaction will increase the value of the company's shares.

As for KEJU, the transaction plan can provide financial benefits in the form of monthly interest payments for the duration of the loan period by the company. For information, KEJU is a subsidiary controlled by Garudafood through an acquisition in October 2020 with a transaction value of IDR 953.7 billion at that time.