Krakatau Steel And Chandra Asri Officially Sign The Deed Of Sale And Purchase Of Shares To Close Transactions

Photo: Doc. Krakatau Steel

JAKARTA - A subsidiary of PT Krakatau Steel (Persero) Tbk, namely PT Krakatau Sarana Infrastruktur (PT KSI) has officially closed transactions on the Conditional Shares and Purchase Agreement (CSPA) or Conditional Sale and Purchase Agreement with PT Chandra Asri Petrochemical Tbk (Chandra Asri) through its affiliate on Monday, February 27.

This procession was carried out by Plt. President Director of PT KSI Anton Firdaus and President Director Chandra Asri Erwin Ciputra witnessed by the President Director of PT Krakatau Steel (Persero) Tbk, Purwono Widodo.

"With this signing, Chandra Asri is the shareholder of two subsidiaries of PT KSI," said Widodo.

Purwono added that all conditions in CSPA had been met so that with the signing of this Deed of Sale and Purchase of Shares, the transfer of shares of PT Krakatau Daya Listrik (PT KDL) by 70 percent and PT Krakatau Tirta Industri (PT KTI) by 49 percent from PT KSI to Chandra Asri with a total value of Rp3.24 trillion became valid.

Purwono Widodo also said that after the signing of the Deed of Sale and Purchase of Shares, the proceeds from this transaction will be used to pay the Tranche B debt which is planned to be completed by the end of 2023.

With this collaboration, there is a synergy between PT KSI and Chandra Asri which is expected to increase the capacity of water and energy supply for industrial needs in Cilegon and also the surrounding community.

President Director of PT Chandra Asri Petrochemical Tbk, Erwin Ciputra said, as a growth partner, his party also hopes that this synergy can have an economic impact on stakeholders and improve public services such as providing electricity and clean water for industries in the Cilegon region.

"And can create jobs in line with business development," said Erwin.

Furthermore, Erwin said this corporate action was also carried out to utilize utilities to support operational, technical and financial processes, especially for the development of Chandra Asri's second petrochemical complex on a global scale (CAP2) in the future.

Erwin explained that the acquisition of "bolt-on" by Chandra Asri was a strategic step to integrate all infrastructure assets, providing electricity and water owned by PT KDL and PT KTI in meeting industrial needs in Cilegon and supporting the needs of the CAP2 expansion plan.

"We are optimistic that the collaboration between the two companies will have a positive and added value impact on business development for both parties. In addition, this transaction is proof of the implementation of Krakatau Steel's commitment to fulfill its obligations in accordance with the restructuring agreement to settle debt payments so that in the future, Krakatau Steel will be healthier and remain consistent in providing its best performance," concluded Purwono.