TEMPO.CO, Jakarta - Property firm Ciputra Group plans to merge subsidiaries Ciputra Surya (CTRS) and Ciputra Property (CTRP) with Ciputra Development (CTRA). The group is targeting the merger to be finalized before the end of this year.
Ciputra Development's director and company secretary Tulus Santoso said the merger is aimed at simplifying the companies' business structure in a bid to improve efficiency and shares liquidity in the capital market, as well as strengthen its finances.
"Later, the three companies will merge into one under the name of Ciputra Development," Tulus told Tempo, Monday, October 24.
The company will seek shareholders' approval on December 2. If approved, the merger deed will be signed on December 23, 2016.
Right now, Ciputra Development is the majority shareholder in Ciputra Surya with 62.66 percent, as well as in Ciputra Property with 56.30 percent.
Franky Rivan an analyst with Daewoo Securities Indonesia, said the merger of Ciputra's three companies Ciputra will only have a major impact on their shares' liquidity. It will have little effect on the company's fundamentals as the three firms have consolidated their financial statements since before.
"In terms of capital base, the increase will not be significant," Rivan said.
DESTRIANITA | ABDUL MALIK