Bakrie to install lines in Vietnam and India<\/p>\n
JAKARTA (JP): PT Bakrie & Brothers, the holding company of the
\nBakrie Group's non-financial subsidiaries, will team up with PTT
\nNederland to install and market telecommunication facilities in
\nVietnam and India.<\/p>\n
Tanri Abeng, the president of Bakrie & Brothers, said here
\nyesterday that the telecommunication projects in Vietnam will
\ncover the construction of around 400,000 telephone lines.<\/p>\n
\"In India, we will take the advantage of its privatization
\nprogram in telecommunication projects,\" he said after their
\nannual shareholder meeting.<\/p>\n
Bakrie & Brothers and the Dutch company, in the first stage,
\nwill install and market around 100,000 of the licensed telephone
\nlines, he explained.<\/p>\n
He said that the construction of the telecommunication
\nprojects will cost Bakrie & Brothers and its partner around
\nUS$1,000 for each telephone line. \"Around 20 percent of the
\nfunding will be in the form of equity and the other 80 percent in
\nloans,\" he said.<\/p>\n
Tanri said that the investment for the planned
\ntelecommunication projects in India will be much smaller than
\nthose in Vietnam as most of the investment will be made through
\nequity participation in that country's state-owned
\ntelecommunication companies.<\/p>\n
Bakrie & Brothers' other investment projects, he said, will
\ninclude the construction of three power plants in Tarahan of
\nLampung, Tanjung Jati of Central Java and Serpong of West Java.<\/p>\n
The total investments of the three power plants will reach
\naround US$1.5 billion, he said. \"Bakrie will put up around 20
\npercent of the total amount.\"<\/p>\n
Bakrie and Brothers, which is listed on Jakarta and Surabaya
\nstock exchanges, is controlled by the Bakrie family, with the
\ninvesting public holding 46.19 percent of the company.<\/p>\n
The business group operates in telecommunications, steel-
\nrelated industries and plantations through its 24 subsidiaries
\nand affiliated firms.<\/p>\n
Dividends<\/p>\n
Yesterday's shareholder meeting approved the management's
\nproposal to distribute around 35 percent of the group's 1994
\nconsolidated net profits as dividends. The meeting also endorsed
\na proposal to split the group's stocks.<\/p>\n
Tanri said that the par value of Bakrie & Brothers' stocks
\nwill be halved to Rp 500 from the present Rp 1,000, thereby
\nallowing shareholders to receive an additional new share for each
\nexisting share held.<\/p>\n
He said that the stock split, which will automatically dilute
\nthe price -- now around Rp 6,700 -- by a half, is expected to
\nmake the stocks more liquid.<\/p>\n
\"We hope the lower price will also encourage small-scale
\ninvestors to buy stock,\" he said.<\/p>\n
Last year, the business group reported a 292 percent rise in
\nits net profit to Rp 102.8 billion (around US$46.7 million) from
\nRp 26.2 billion in 1993.<\/p>\n
The group's telecommunication division contributed around 53.7
\npercent of the total profit, the steel-related subsidiaries
\naround Rp 20.9 percent and the plantations 12.4 percent. (hen)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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