Haji Isam pledges JARR and PGUN shares for Bayan Resources acquisition

Haji Isam has utilized significant share pledges to fund the acquisition of 10 billion shares of PT Bayan Resources Tbk. (BYAN), a transaction valued at approximately Rp26.1 trillion. To secure credit facilities from PT Bank Mandiri (Persero) Tbk., the controlling entities have pledged shares from PT Jhonlin Agro Raya Tbk. (JARR) and PT Pradiksi Gunatama Tbk. (PGUN).

Specifically, PT Eshan Agro Sentosa, the controlling shareholder of JARR, pledged 7.99 billion shares to Bank Mandiri. Following the disclosure of this transaction, JARR shares experienced a 4.56% decline, trading at Rp2,930 per share.

While the pledge involves 100% of PT Eshan Agro Sentosa’s ownership in JARR, management has clarified that the transaction does not result in a change of control or share dilution. Analysts note that while the initial loan-to-value (LTV) ratio is approximately 34.37%, significant drops in share prices for JARR or PGUN could trigger requirements for additional collateral or debt repayment.