Pan Brothers EGMS Agrees To Secure Assets, These Are The Company's Plans

Illustrations. (Photo: Doc. Pan Brothers)

JAKARTA - The textile company, PT Pan Brothers Tbk (PBRX) held an Extraordinary General Meeting of Shareholders (EGMS) and received approval for the company's plan to provide guarantees in the form of corporate guarantees or other material guarantees for all or most of their assets or assets. company assets.

The EGMS took place on Friday 31 January. The company plans to issue debt securities, syndicated facilities and or bilateral facilities provided by other parties including banks, venture capital companies, financing companies or infrastructure financing companies, both locally and internationally.

"The majority of shareholders in this EGMS agreed to pledge assets for refinancing," explained PBRX's Corporate Secretary, Iswar Deni, to reporters after the EGMS.

Iswar said that the company's EGMS also scheduled a report on the use of proceeds from the 2014 Limited Public Offering III worth Rp1.018 trillion.

In detail, Rp246.50 billion was used to increase production capacity through a subsidiary, namely PT Eco Smart Garment Indonesia (ESGI). To note, the company holds 85 percent of the shares in the subsidiary.

"In this case, the company will increase its investment proportionally according to the Company's share ownership in the subsidiary, to fund new factories in Central Java," said Iswar Deni.

Then, around Rp316.68 billion to invest in the upstream and downstream sectors to expand the company's position in the field, through additional investments in subsidiaries.

"Currently, the company has increased capacity through automation and digitalization, so working capital is needed to support the increased capacity," he explained.

The remaining Rp449.03 billion, said Iswar Deni, will be used to increase the Company's working capital to support PBRX's operations.