"The debt settlement accords with the plan to use a great chunk of IPO funds to settle debts," ICBP Director Hendra Wijaya said.
The company raised Rp6.086 trillion in funds from the IPO to settle debts and finance capital expenditure. However, according to the company`s initial prospectus, the plan to use the IPO funds to finance capital expenditure expected to reach Rp2.021 trillion had yet to materialize.
"This means that we will use the remaining Rp2.021 trillion from the IPO to finance our capital expenditure," he said.
According to the company`s prospectus published in December 2010, 67 percent or Rp4.1 trillion of the IPO funds would be used to settle debts. As such, the company`s spending on interest expense would decline by 6-7 percent per year.
The company is expected to spend Rp954 billion on capital expenditure this year, while the amount of short-term debts to a number of banks reaches about Rp1.1 trillion.
ICBP saw its first-semester net profit surge 23.7 percent to Rp990 billion from the same period last year, fueled by rising sales which grew 5.7 percent to Rp9.42 trillion.
The instant noodle and dairy divisions respectively contributed 68 percent and 19 percent of the first-semester sales.
(Uu.S012/HAJM/S012)
Editor: Priyambodo RH
Copyright © ANTARA 2011
