Transit-Mixed Concrete has, on May 17, exercised its put option to dispose of its entire stake amounting to 45% in the issued and paid-up capital of PT ATMC Pump Services for a consideration of 20.25 billion rupiah ($1.9 million).
The option, which was made according to the provisions of the existing shareholders agreement with PT Acset Indonusa, is subject to the execution of a sale and purchase agreement (SPA).
PT ATMC is a joint venture entity established on July 21, 2014 in Indonesia. It is primarily in the business of providing concrete pumping services in the country.
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As at May 17, the entire issued and paid-up capital of PT ATMC amounts to 45 billion rupiah.
PT Acset Indonusa holds the remaining 55% stake in PT ATMC.
Upon the completion of the proposed disposal, PT ATMC will cease to be a joint venture entity of Transit-Mixed Concrete.
According to the company, the disposal will enable it to conserve and re-strategise its financial and capital resources for its other businesses.
Transit-Mixed Concrete intends to use the net proceeds of $1.9 million for working capital purposes.
It also intends to look out for business opportunities that can generate higher value to the company’s shareholders, it says.
The proposed disposal is not expected to have a material impact on the company’s net tangible assets (NTA) or earnings per share (EPS) for the financial year ending Feb 28, 2022.
Shares in Transit-Mixed Concrete closed flat at 12 cents on May 17.
