JAKARTA (Yosefardi) – Textile and garment giant PT Sri Rejeki Isman Tbk (SRIL) Tbk, popular as Sritex, plans to acquire 99.9% stake in PT Sinar Pantja Djaja from PT Kapas Agung Abadi.

SRIL will acquire Sinar Pantja at price of Rp723 billion. The company had raised Rp1.29 trillion from the initial public offering (IPO) in mid June this year.

On IPO prospectus, SRIL said it will use IPO proceeds of Rp723 billion for funding expansion of its spinning production facility. But it now prefers to acquire Sinar Pantja for boosting production.

Sritex booked net profit of Rp229.3 billion from sales revenue of Rp2.85 trillion last year. Textile finishing was the largest contributor of revenues with Rp1.3 trillion, followed by garment, spinning, and weaving segments.