Indika Energy (INDY) has recently announced an agreement to sell a subsidiary, Trisetia Citagraha (TCG), to Barito Pacific Lumber (BPL) for a total consideration of IDR 26.7 billion.

Who is TCG? Based on the latest financial statement, the company engages in forestry business with a total area of 24,287 ha located in East Kalimantan.

INDY has an 80% indirect ownership in TCG through Indika Multi Property (IMP), a wholly owned subsidiary.

IMP has developed more than 160,000 ha of industrial forest area, located in East and Central Kalimantan.

The transaction: Agreed consideration for the transaction is IDR 26.7 billion that will be conducted in two stages.

First, an amount of IDR 22.3 billion for the transfer of rights over capital advance and 80% sale of shares of IMP to BPL, which has been completed.

The remaining IDR 4.4 billion to be done for 20% sale of shares of IMP to the purchaser.

BPL is ultimately owned by Prajogo Pangestu and has a minority stake in Barito Pacific (BRPT) around 0.5%.

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