PT Fajar Surya Wisesa Tbk. (the “Company”) announced on 9 August 2018 that the Company’s 99.99%-owned subsidiary, PT Dayasa Aria Prima (“DAP”), conditionally agreed to purchase certain land, buildings and machinery located in East Java from PT Surabaya Agung Industri Pulp & Kertas Tbk. (“SAIPK”) and certain land from PT Capital Management Indonesia (together, the “Sellers”) for a total purchase price of Rp. 742.5 billion (the “East Java Assets”). Subject to certain conditions to be met, including regulatory requirement conditions, the transaction is expected to be completed in late 2018.
On 24 August 2018, DAP paid a down payment of Rp. 27.2 billion to SAIPK in connection with its planned purchase of SAIPK’s portion of the East Java Assets.
On 18 July 2018, DAP entered into a loan facility with PT Bank Central Asia Tbk, PT Bank OCBC NISP Tbk and Oversea-Chinese Banking Corporation Limited for up to Rp. 346.5 billion and USD 45 million. The Company intends that DAP will borrow approximately Rp. 346.5 billion and USD 25 million, under this loan facility and apply the proceeds in partial satisfaction of the remaining purchase price for the East Java Assets. The remaining USD 20 million loan facility will be used to refurbish the East Java Assets. DAP’s borrowings under the loan facility will be guaranteed by the Company and secured by the East Java Assets.
The Company is currently evaluating opportunities to raise funds for the remaining purchase price of the East Java assets, including by means of one or more potential public offerings or private placements of debt or equity securities, which may include a rights offering.
THIS DOCUMENT DOES NOT CONSTITUTE AND IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES (THE “SECURITIES”) OF THE COMPANY IN THE REPUBLIC OF INDONESIA, THE UNITED STATES OR ELSEWHERE. THE COMPANY HAS NOT REGISTERED AND DOES NOT INTEND TO REGISTER THE SECURITIES UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND THE SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION. THE COMPANY DOES NOT INTEND TO MAKE ANY PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES OR IN ANY OTHER JURISDICTION.
About Fajar Paper:
FajarPaper is a leading manufacture of packaging paper in Indonesia. It is Forest Stewardship Council-Chain of Custody (FSC-CoC), ISO 9001, ISO 14001, and OHSAS 18001 certified, as well as a Clean Development Mechanism (CDM) and Joint Credit Mechanism (JCM) registered. It has a large production capacity to supply quality & innovative packaging paper products.
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