KPPU Imposed Fines on Late Notification to Food Company.
Jakarta (26/11) – KPPU announced a decision declaring that reported party in case number 07/KPPU-M/2018 with regard to Late Notification of Acquisition of Shares of PT Prima Top Boga by PT Nippon Indosari Corpindo, Tbk, has violated Article 29 of Law Number 5 Year 1999 jo. Article 5 of Government Regulation Number 57 Year 2010, on Monday, 26 November 2018.
The Commission Council, Ukay Karyadi, Guntur S. Saragih and Dinni Melanie, decided that reported party, namely PT Nippon Indosari Corpindo, Tbk, is to pay for fines with the amount of IDR 2,800,000,000.00 (Two Billion Eight Hundred Million Rupiah) to the State Treasury as a violation revenue deposit in the field of business competition of the Work Unit of the Commission for the Supervision of Business Competition.
The object of the case is late notification of the Acquisition of Shares of Company PT Prima Top Boga by Reported Party, with a transaction value amounting to IDR31,499,722,800.00 (thirty-one billion four hundred and ninety-nine million seven hundred and twenty-two thousand and eight hundred Rupiah).
During the reading out of the decision, it was also explained that reported party conducted an acquisition/share acquisition transaction of PT Prima Top Boga on January 24, 2018, amounting to 32,051 shares (the issuance of new share certificates) acquired by way of capital increase amounting to IDR 31,499,722,800.00 (thirty-one billion four hundred and ninety-nine million seven hundred and twenty-two thousand and eight hundred Rupiah) by PT Nippon Indosari Corpindo, Tbk. Following a lengthy process through the Directorate of Merger, it was informed that based on the calculation of calendar days, notification of acquisition of PT Prima Top Boga should have been given to the Commission by no later than March 23, 2018. However, the reported party made a report on such acquisition on March 29, 2018.
Pursuant to Government Regulation Number 57 Year 2010, that the reported party shall be obligated to notify the Commission of the acquisition by no later than 30 (thirty) calendar days.