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OUE to make S$10m loan to PT Maxx Coffee Prima
OUE's wholly-owned subsidiary, OUE Treasury, has entered into a loan agreement to advance PT Maxx Coffee Prima S$10 million for a six-month period.
The loan is considered an "interested person transaction" since Dr Stephen Riady, OUE's executive chairman and a controlling shareholder, and James Tjahaja Riady, a controlling shareholder of OUE, have a deemed interest in more than 30 per cent of the shares of PT Maxx.
Dr Riady has recused himself from the board's decision-making in relation to the loan agreement. OUE's audit committee has considered the terms of the agreement, and is of the view that the terms and conditions are on normal commercial terms, and are not prejudicial to the interests of the company and its minority shareholders.
The interest on the loan is 5.44 per cent per annum.
In a filing to the Singapore Exchange on Friday, OUE said: "The entry into the loan agreement by OUE Treasury is an opportunity for the group to optimise its returns on its available funds in the current low interest rate environment."
The counter closed at S$1.45 on Friday, down two cents.