JAKARTA (TheInsiderStories) – Indonesia’ Property developer, PT Kawasan Industri Jababeka Tbk (IDX: KIJA) investors filed a lawsuits against the decision of the Annual General Meeting of Shareholders which was held last June 26. The lawsuit was registered at the Central Jakarta District Court last week.
Recently, the company took a number of steps related to the risk of default on senior notes issued by its subsidiary based in Netherland, Jababeka International BV. According to the President Director Budianto Liman the potential failure of its subsidiary began after Mu’min Ali Gunawan (owner of Panin Group) owned 21.39 percen, PT Imakotama Investindo (6.39 percent) and Islamic Development Bank (IDB) owned 10.84 percent, become the company’ shareholders.
The two companies proposed Sugiharto as President Director and Aries Liman as commissioner. Jababeka‘ new management denied the issue that arose over the potential default of US$300 million in debt due to changes in management company.
He also denied the existence of a “acting in concert” clause, or conspiracy from KIJA’ shareholders to control the company. Sugiharto also reluctant to explained what was the main problem between the company’ shareholders so far.
This statement, contradicted with the explanation of Liman, who said that there had been acting in concert during a shareholders’ vote in last June. He stated during a press conference in Jakarta on July 7, “This company is the victim of acting in concert, not because of performance.”
So what really happened?
In the July 7, Jababeka‘ management revealed there was a risk of default on Notes payment obligations issued by its unit. The cause is a change in control in the company which resulted must buyback the notes.
“Jababeka International is obliged to provide a buyback to the holders of Notes with a purchase price of 101 percent of the principal value of $300 million plus interest obligations,” said the official statement.
Beside, get rejected from the existing shareholders, the vendor of Jababeka also sent their complaint on the change of the management. While, Indonesia Stock Exchange said will monitor the development of the dispute before take a decision on it.
Jababeka is developer of Jababeka Industrial Estate in Cilegon, Banten province (1,000 Ha), Tanjung Lesung (1,500 Ha), and Jababeka City (5,600 Ha).
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