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Provident Agro reduces nominal value of shares
Publicly listed plantation firm Provident Agro (PALM) announced on Monday that it would reduce the nominal value of its shares to Rp 15 (about 0.12 US cents) apiece from Rp 100 because it had excess liquidity from the divestment of four of its subsidiaries last year.
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Workers load oil palm fresh fruit bunches into a truck. (kompas.com/Iwan Setiyawan)
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ublicly listed plantation firm Provident Agro (PALM) announced on Monday that it would reduce the nominal value of its shares to Rp 15 (about 0.1 US cents) apiece from Rp 100 because it had excess liquidity from the divestment of four of its subsidiaries last year.
In August 2016, the firm completed the divestment of four of its subsidiaries, namely Global Kalimantan Makmur, Semai Lestari, Saban Sawit Subur and Nusaraya Permai for up to Rp 2.7 trillion.
Of the revenue, Rp 1.4 trillion was used to pay off liabilities, while the remaining Rp 1.3 trillion was kept by the firm for internal cash reserves and also returned to shareholders.
“The excess liquidity of Rp 605 billion will be given back to the shareholders,” Devin Antonio Ridwan, PALM’s corporate secretary, told reporters after an extraordinary shareholder’s meeting held in Jakarta.
The majority of PALM’s shares are owned by Saratoga Sentra Business (44.16 percent) and Provident Capital Indonesia (44.16 percent), while the remaining shares are owned by the firm’s commissioners, directors and the public.
As of September 2016, the company produced 262,000 tons of fresh fruit bunches (FFB) and 95,000 tons of crude palm oil, Devin said.
After the divestment of its four subsidiaries, the company now has eight plantations in Sumatra and Kalimantan. The company’s main operational activities are harvesting FFB, processing FFB into crude palm oil and palm kernel, as well as selling plantation products. (bbn)
