PT Summarecon Agung (SMRA) has injected an additional Rp485.57 billion (US$31 million) into its subsidiary, PT Summarecon Property Development (SMPD), as part of a strategic move to bolster its growth.
Summarecon Agung, a leading property development company established in 1975, focuses on property and real estate. Its biggest projects are in mall construction and property development.
Lydia Tjio, Corporate Secretary of Summarecon Agung, said that the capital increase is part of the company’s strategy to support SMPD’s continued development.
“Summarecon Agung, which holds a 99.99 percent stake in SMPD, utilized the issuance of portfolio shares to increase its capital,” Lydia said, citing the company’s disclosure to the Indonesia Stock Exchange on Friday, October 11, 2024.
With the additional funding, SMPD’s paid-up capital now rises significantly from Rp4.57 trillion in 4.56 billion shares to Rp5.05 trillion in 5.05 billion shares.
This move is expected to provide a stronger financial foundation for SMPD, enabling the subsidiary to scale up its operations in line with Summarecon’s vision of building a solid, competitive business.
In addition to the capital injection, Summarecon Agung also increased its authorized capital from Rp6 trillion in 6 billion shares to Rp7 trillion in 7 billion shares, formalized through an Extraordinary General Meeting of Shareholders (EGMS) of PT Summarecon Property Development.
The transaction between Summarecon Agung and SMPD falls under the category of controlled-company transactions and is exempt from the requirement for independent valuation or additional fairness assessments, in accordance with the Financial Services Authority (OJK) Regulation No. 42/2020.
This regulation stipulates that affiliated transactions within controlled companies do not require additional disclosure or external valuation.
The move is seen as a strategic step to ensure long-term financial stability and growth for Summarecon Property Development, positioning the company for larger projects and sustained expansion in Indonesia’s property market.
