To protect local producers from a surge imports of fabric, yarn, and curtains, Indonesian government has imposed new tariffs since May 27 until November 2022, finance ministry announced today (05/28) - Photo by the Trisula

JAKARTA (TheInsiderStories) – Indonesian garment and trade company, PT Trisula International Tbk (IDX: TRIS) get the permit from its shareholdes to run rights issue program, said the company  The manufacturer planned to releases 2.09 billion shares with targeting funds Rp577.90 billion (US$40.98 million).

The proceed from the rights issues will use for the acquisition 78.52 percent of PT Trisula Textile Industries Tbk (IDX: BELL) shares. It said, the corporate action is part of the manufacturer program to enter the new business segment under the banner of BELL.

The transaction value of the planned acquisition of BELL shares amounted to Rp574.94 billion. PT Inti Nusa Damai, the owner of Trisula acts as a standby buyer.

“We expect this acquisition to be completed on Dec. 9,” said the president director Santoso Widjojo by adding the acquisition of BELL will contribute 35 percent to consolidated revenues of the company starting next year.

This acquisition will also lead to an efficiency of around 13 percent and its expecting to drive the manufacturer’ profit margin. Beside bought BELL shares, said Widjojo, Trisula in the process to build a new factory in Central Java to jack up the production capacity. In the initial stage, the issuer allocated an investment around Rp100 billion.

He adds, the land needed for the new factory is around five hectares. The company began to explore a number of areas such as Solo, Boyolali, and Sragen in Central Java for the new plant.

In the long run, Widjojo said, the new plant in Central Java will have a capacity up to 3.5 times the current production capacity. Currently, the Trisula had four production facilities in West Java.

Trisula International is a publicly listed company specialising in garment manufacture and the management of popular and lucrative clothing brands. The company floated on the Jakarta Stock Exchange in 2012 with coded TRIS. The company is part of Trisula Corp., a diversified holding company with a wide range of businesses which focuses on the export market.

The company has a garment business with a production capacity of 5,000 pieces per month and 193 retail networks in Indonesia. While, BELL is a clothing material manufacturer with a production capacity of 1 million yards per month, and has a uniform apparel division that focuses on the local market.

US$1: Rp14,100

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