JAKARTA (TheInsiderStories) - Publicly listed firm, PT Lautan Luas Tbk (IDX: LTLS) has purchased 4.9 percent of PT Unggul Indah Cahaya Tbk (IDX: UNIC), a joint venture company owned by Wings Group and Salim Group. The chemical distributor company bought 19.01 million shares of the alkylbenzene producer from public on Oct. 9 and 12 for Rp89.35 billion (US$6.07 million).
The management said in the disclosure of information, the decision is expected will have a positive impact to the issuer. Alkylbenzene is one of the main raw materials for detergents. Currently, UNIC has three factories with a total production capacity of 270,000 metric tones (MT) per year.
Recently, Lautan Luas cut 2020′ revenues target by 20 percent from a year ago caused of the COVID-19 pandemic. Last year, the manufacturer posted a revenues of Rp6.53 trillion with distribution segment as the largest contributor.
The issuer is currently strengthening its manufacturing business line by adding the capacity production of its chemical plants. For this plans, the manufacturer allocated a capital expenditure Rp300 billion. The unit, PT Liku Telaga, is the producer of sulfuric acid and aluminum sulfate for the production of detergents, ceramics and paper.
In addition, this year the company will also strengthen its manufacturing business line in the creamer sector which is managed by other subsidiary, PT Lautan Natural Krimerindo. Currently, the creamer production capacity reaches 60,000 tons per year and its products have spread in modern retail stores throughout Indonesia.
“The distribution business has been hit hard because the majority of its product sales come from the agricultural sector and livestock,” said Joshua C. Asali, Director of Lautan Luas last year.
Beside the company, the shareholders of Unggul Indah Cahaya are PT Alas Pusaka (11.39 percent), PT Salim Chemicals Corpora (10.34 percent), and the rest hold by public (41.92 percent).Alas Pusaka is the unit of Wings Group, where the owner, Harjo Sutanto, is known as the oldest Crazy Rich in Indonesia.
While, the board of commissioners recorded a number of names from the Wings and Salim groups, like vice president of PT Indofood Sukses Makmur Tbk (IDX: INDF), Franciscus Welirang and Teddy J. Katuari. in addition, president commissioner is hold by Erwin Sudjono, the son-in-law of Sarwo Edhi Wibowo or brother-in-law of Ani Yudhoyono, wife of former President Susilo Bambang Yudhoyono.
US$1: Rp14,700
Written by Editorial Staff, Email: theinsiderstories@gmail.com
