Clover Universal Enterprise Ltd increased its share ownership in PT Centratama Telekomunikasi Indonesia Tbk (CENT) by 1.91 billion shares.

This addition makes Clover the holder of 47.95% or equivalent to 14.95 billion shares of CENT. Simultaneously, Centratama Telekomunikasi Indonesia's share price closed at Rp183 yesterday (8/3), strengthening Rp2 (up 1.10%).

The company has a price-to-earnings ratio (PER) down 51.45 times with a market capital of Rp5.71 trillion.

Based on information disclosure on Tuesday (9/3), the controlling company Centratama Telekomunikasi has purchased 1.91 billion shares of CENT on February 25, 2021. The purchase price is Rp168 per share.

Thus, this controlling company spent up to Rp321.74 billion in funds.

"This transaction is intended for investment. With this transaction, Clover Universal Enterprise Ltd will be the holder of 47.95% with total shares of 14.95 billion shares of Centratama Telekomunikasi Indonesia, "said Corporate Secretary of Centratama Telekomunikasi Indonesia, Wiwik Septriandewi.

Previously, Centratama Telekomunikasi Indonesia obtained a jumbo syndicated loan of Rp5.7 trillion from three well-known banks, namely PT Bank Mandiri (Persero) Tbk (BMRI), PT Bank Negara Indonesia Tbk (BBNI), and PT Bank Permata Tbk (BNLI).

Wiwik said that the company plan to use the funds from this loan facility to develop the company's core business and its subsidiaries.

"Syndication is also used to repay existing loan facilities," he said in an official statement.

With this loan facility, the company's subsidiaries will provide collateral in their assets to the syndicated bank. The company signed the syndication agreement on February 24, 2021.

For information, several companies under the Centratama Group consist of PT Centratama Menara Indonesia, PT Mac Sarana Djaya, PT Fastel Sarana Indonesia, and PT Network Quality Indonesia. On the other hand, Centratama Telekomunikasi, in early February, announced a corporate action plan for Capital Increase with Pre-emptive Rights or a rights issue by releasing 34 billion new shares or more than 100% of the total outstanding shares with a nominal value of Rp100 per share.

CENT will carry out the corporate action after holding an Extraordinary General Meeting of Shareholders (EGMS) on March 15, 2021. If approved, the company will act for 12 months after obtaining approval.