Ekadharma to Build IDR64.678 Bn Plant in Malaysia

Tuesday, 24 June 2008 08:29:42
StockWatch (Jakarta) - PT Ekadharma Internasional Tbk (EKAD) has planned to build an adhesive manufacturing plant in Malaysia and the investment for constructing the infrastructure and buying the machines is estimated at IDR64.678 billion.

Visko Industries Sdn Bhd, a joint-venture company based in Selangor (Malaysia) in which the company has 51% stake, has been appointed to build the plant.

Based on the company's prospectus, the plant will be built to anticipate demand for adhesive tapes and to expand export markets in East Asia, the Middle East and Africa.

According to the management, the investment will be financed with bank loan (30.22%) and by the company's shareholders (69.78%) while the company's working capital will be financed with bank loan (70%) and sharehodlers (30%) so the total bank loan will be IDR34.703 billion and from the shareholders IDR51.626 billion.

Before implementing the plan, the management will seek the shareholders' approval in the EGM on July 23, 2008, and has appointed PT Mediaindo Citra Kirana as financial consultant for conducting a feasibility study on the transaction plan.