PT BISI INTERNATIONAL TbkOn 31 July 2017, the Company and PT Branita Sandhini, a company under Monsanto Group (“BS”), have signed a Memorandum of Understanding (“MOU”), pursuant to which the Company has agreed to purchase assets owned by BS, i.e. seed processing plant, dehumidified cold warehouse, dryers, including the equipment located in at Jl. Raya Pacing-Dlanggu KM1, Sumberwono Village, Bangsal District, Mojokerto Regency, East Java, Indonesia, in the land plot with HGB titles of 84.700 m2 and building of 17.924 m2 (“Proposed Assets Purchase Transaction”).
The value of the Proposed Assets Purchase Transaction is Rp163.980.000.000,- (one hundred and sixty three billion, nine hundred and eighty million Rupiah). Based on the MOU, the Proposed Assets Purchase Transaction shall be followed up with the signing of an Asset Transfer and Purchase Agreement at the latest on 31 August 2017 and the Completion shall be made at the latest on 31 December 2017.
The Company and BS have no afiliation relationship.
The Proposed Assets Purchase Transaction is not a Material Transaction as referred to in Regulation No. IX.E.2, Attachment of Decree of Chairman of the Supervisory Board of Capital Markets and Financial Institutions No. Kep-614/BL/2011 dated 28 November 2011 on Material Transaction and the Change of Core Business, since the value of the Proposed Assets Purchase Transaction is less than 20% of the Equity value of the Company based on its audited Consolidated Financial Statements for the year ended on 31 December 2016 (Rp412.705 million).
The source of funds used for the Proposed Assets Purchase Transaction shall be from the internal cash flow of the Company.
If the Proposed Assets Purchase Transaction is undertaken, the Company can increaseits seed production capacity faster, in anticipation of the upcoming increase in seed demand.