ISSUER NEWS-JAKARTA. PT Chandra Asri Pacific Tbk (TPIA) plans to separate its business unit, also known as a spin off, of the port, dock, and storage facilities by transferring them to its subsidiary, PT Chandra Pelabuhan Indonesia (CPAT).
Quoting a summary of the separation plan at the Indonesia Stock Exchange (IDX) on Friday (15/3), TPIA management explained that the benefits of this unit separation will strengthen the capital structure for asset development and management.
"Thus, it can support the fulfillment of customer demands related to the port, dock, and storage business," wrote TPIA management in the information disclosure, Friday (15/3).
Secondly, the spin off of this business is a step towards business development diversification by having a focused, competitive, and flexible management in decision making and business opportunities.
Read Also: Chandra Asri (TPIA) Secures US$ 600 Million Credit Facility
Thirdly, it will open opportunities for strategic and synergistic cooperation to carry out business development and anticipate future business opportunities and create added value for shareholders.
"This transfer is part of TPIA's plan to invest capital in PT Chandra Pelabuhan Indonesia through the signing of a separation deed," explained TPIA management.
The capital investment in CPAT will be carried out as soon as TPIA has obtained approval from the Annual General Meeting of Shareholders (AGMS) for the plan to separate the business unit or spin off.
In the future, the TPIA's port, dock, and storage business unit will be transferred to and operated by CPAT. Then, all permits, license facilities, and employees will also be transferred to CPAT.
