According to the Corporate Secretary Sierad Produce Elies Lestari Setiawan, through quasi reorganization, the Company’s balance sheet is no longer burdened with deficit.

“It will give positive impact for our shareholders as the Company may distribute dividends. Interest of investors to own shares of the Company also will increase,” she said after the extraordinary general meeting (EGM) of shareholders in Jakarta, Tuesday (12/22).

Quasi reorganization is an accounting procedure which regulating the Company to restructure its equity by eliminating the deficit and to evaluate all assets and liabilities.  

Elies explained, Sierad Produce quasi reorganization is carried out through the revaluation of assets and liabilities according to fair value, the encounter (set off) the deficit balance with the difference result of the revaluation of assets and liabilities, and set off the deficit balance with the balance of additional paid-in capital. Other additional is set off the deficit balance with the result of reduction issued and paid-in capital through the reduction of the nominal value of shares.

She said, before fair appraisal, the total book value of Sierad Produce’s assets reached Rp 1.49 trillion. After fair appraisal, the book value of Company’s assets is Rp 1.60 trillion.

Sierad Produce, Elies Lestari said, so far has three series of shares with the nominal of each Rp 5,000, Rp 3,000 and Rp 100 per share. After quasi approved by shareholders, the Company will reduce the nominal value of shares from Rp 5,000 and Rp 3,000 become Rp 395, while the shares with nominal value Rp 100 not down.

She said, the reduction value of shares with nominal Rp 5,000 with the number of shares of 73.09 million units, can generate the difference in funds about Rp 336.62 billion. As for the reduction in nominal value of shares of Rp 3,000 with the number of shares of 650.68 million units which can generate the difference in funds about Rp 1.69 trillion.