Transactions Date and Amount
On 30 april 2018 and 11 November 2018, the following Deeds of Grant of Mortgage were signed :
The four Deeds mentioned above were darwn up before Syamsul Hidayat, SH, Notary in Bogor Regency, by and between the Company and PT Izumi sentul Realty (ISR), a company established by virtue of on and subject ti Indonesia's law, and domiciled in Bogor Regency, and one of the Company's subsidiaries.
considering the amount of mortgages that shall be granted by the Company to ISR was IDR 1.139.548.500.000, on 22 November 2018, in concert with the signing of the Deed of Grant of Mortgage No. 148/2018, ISR issued a Hypothec Cancellation Order for objects of mortgage secured under Deed of Grant of Mortgage No. 57/2018.
The objects of Mortgages consisted of several plots of land located in Desa Sumur Batu, Bojong Koneng and Citaringgul with an overall area of +33,7 hectares. The amount of the Transactions for all Objects of Mortgage based on Deed of Grant of Mortgage was IDR 1.139.548.500.000.
The parties to the Transaction were the Company and PT Izumi Sentul Realty.
Nature of Affiliation
The Transactions as describe above constitutes an affiliate transaction since the Company is a shareholder of ISR and there are one or more directors or commisioners who are the same persons both in the Company and ISR.
Explanation of the Fairness of Transactions
As Stated in their report in their report No. JK/FO/180430-001 dated 30 April 2018 regarding opinion on the fairness of Transactions the Office of Public Appraisal Service (KJPP) JKR arrived at a conclusion that : Based on the scope of work, assumptions, data and information derived from the management of the Company used to prepare this fairness opinion report, a review of the financial impact of the Transaction as stated in this fairness opinion report, JKR is of the opinion that the Transaction was fair for the Company and the shareholders of the Company.
Fulfillment of Provisions
The purpose and objective of preparing this fairness opinion report on the Transactions are to provide an overview to the Company's Board Of directors regarding the arm's-length nature of the Transaction and to fulfill the applicable provisions, namely Regulation IX.E.1.