Layoffs of Hundreds of Employees, Pizza Hut Wants to Share Shares

Jakarta, CNBC Indonesia – Pizza Hut Indonesia franchise holder, PT Sarimelati Kencana Tbk (PZZA) plans to increase capital in the form of a management and employee share ownership program (MESOP) conversion.

The Corporate Secretary, Kurniadi Sulistyomo, said that the implementation of the MESOP had received the blessing of the shareholders at the Annual General Meeting of Shareholders (AGMS) on March 9 2018. The MESOP is valid for a period of 5 (five) years from the approval of the Meeting.

In the first stage, the number of MESOP shares amounted to 9.06 million shares or the equivalent of 30% in the period July 20, 2019, May 23, 2020 and May 23, 2021.

The second stage, the number of shares of MESOP is 9.06 million shares, or the equivalent of 30%, whose implementation period will be held on 23 May 2020, 23 May 2021 and 23 May 2022.

The third level, the total number of MESOP shares is 40% or equivalent to 12.08 million shares executed on 23 May 2021, 23 May 2022 and 23 May 2023.

“The implementation price for the conversion of the MESOP program is Rp 1,112 per share,” said Kurniadi, in his announcement on the information disclosure page, Tuesday (18/5/2021).

The shares issued by the company as part of the conversion of the MESOP Program will be treated as fully paid shares and as part of the Company’s share capital structure, and provide the same rights as other shareholders as regulated under the Articles of Association of the Company.

Furthermore, the listing of shares resulting from the conversion of the MESOP Program into the Shareholders Register will be carried out on the implementation date. Third, shares resulting from the conversion of the MESOP Program can be sold and / or transferred.

Pizza Hut in Indonesia in 2020 recorded a net loss of Rp. 93.51 billion last year, even though in 2019 it had recorded a net profit of Rp. 200.02 billion. Signs of loss for PT Sarimelati Kencana Tbk, which manages Pizza Hut outlets in Indonesia, occurred when the pandemic hit early 2020.

Throughout 2020, the company’s net sales amounted to IDR3.46 trillion last year, or a 13.25% drop from the previous year’s IDR3.99 trillion.

As of December 31, 2020, the company had 5,787 each, while in 2019 there were 6,560 permanent employees (unaudited). This means that there is a reduction of around 773 permanent workers in a period of one year.

[Gambas:Video CNBC]

(hps / hps)

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