PT Wijaya Karya (Persero) Tbk. (WIKA) increased its paid-in capital / issued capital of IDR 150 billion to WIKA Realty (one of its subsidiaries) to support WIKA Realty’s growth in accordance with the 2014 – 2018 Long Term Plan. WIKA plans to increase paid-in capital / issued capital of IDR 300 billion to WIKA Realty that will be done gradually in amount of IDR150 billion in 2014 and IDR150 billion in 2015.
President Director of WIKA Bintang Perbowo said Shareholder of WIKA Realty have agreed to take part on WIKA Realty capital enhancement in proportion to each shareholder in the WIKA Realty.
By the affiliate transaction will increase the ownership of WIKA equity to WIKA Realty that influence dividend enhancement in the future. For WIKA Realty, this capital enhancement will be useful to add to the equity and debt equity ratio decrease, increase loan guarantees, adding cash, capital and investments to add recurring income and increase new contracts obtaining. In addition to strengthening the capital structure so as to increase the potential of the company to obtain additional funding from third parties and foster better performance after the capital increase from WIKA.