SSEK Advises IDX-Listed Indo Kordsa on Merger

SSEK Law Firm has advised PT Indo Kordsa Tbk (“Indo Kordsa”) on the successful merger with its subsidiary, PT Indo Kordsa Polyester (“IKP”).

Indo Kordsa, the surviving company in the merger, is a leading tire and polyester yarn manufacturer that is listed on the Indonesia Stock Exchange (“IDX”). This transaction was only the third merger of 2022 involving a company whose shares are traded on the IDX.

Indo Kordsa said the merger would enhance its efficiency and result in a more flexible and competitive company with a reinforced capital structure and operational excellence.

SSEK’s work on the transaction included advising on the transaction structure, performing legal due diligence on Indo Kordsa and IKP, preparing and reviewing transaction documents including the merger statement, prospectus, merger plan and merger deed, and assisting in the submission of documents to the relevant government bodies.

Because Indo Kordsa is listed on the IDX, a key part of SSEK’s work was helping Indo Kordsa liaise with and obtain external approvals and/or exemptions from the Financial Services Authority (“OJK”) and the IDX, among other government bodies.

The SSEK team working on the transaction was led by partners Ira A. Eddymurthy and Rusmaini Lenggogeni, with co-lead associates Indrawan Dwi Yuriutomo and Ahmad Charlie Rivai Malessy.