Argha Karya sells asset

JAKARTA (JP): PT Argha Karya Prima Industry, manufacturer of flexible packaging, announced yesterday it signed an agreement to sell its converting division to Germany's VAW Europack GmbH.

The publicly listed company said the sale included the major portion of the converting division's fixed assets.

The transaction is subject to customary conditions, including satisfactory due diligence investigation.

The sale of the converting division would make Argha Karya's operational activities more focused on the film division and further strengthen its market and financial position.

The converting division is part of Argha Karya's operating facilities, which convert several basic materials provided by its upstream film division as well as from other material suppliers into finished flexible packaging products. (hen)