Bank Danamon to hold reverse stock split<\/p>\n
JAKARTA (JP): Shareholders of publicly listed PT Bank Danamon
\napproved on Thursday management's plan to conduct a reverse stock
\nsplit to avoid delisting by the Jakarta Stock Exchange.<\/p>\n
Bank Danamon president Arwin Rasyid said the reverse stock
\nsplit would merge every 20 shares into one share, a move that
\nwould boost the price of a share from a nominal value of Rp 5,-
\n(about 0.4 U.S. cents) to Rp 100.<\/p>\n
\"The reverse stock split is slated for July 17,\" he said
\nfollowing the bank's annual shareholders meeting.<\/p>\n
Bank Danamon is at risk of being delisted with investors
\ntrading the bank's shares below Rp 50 for a long period of time.<\/p>\n
Danamon was nationalized by the government following the
\ndevastating 1997 financial crisis. The government has said that
\nit would divest its ownership in the bank to raise cash to help
\nfinance state budget deficit.<\/p>\n
Arwin said if the bank was delisted it could jeopardize the
\ngovernment's plan to divest its stake in the bank.<\/p>\n
The bank previously split its stocks to lower its share prices
\nin order to improve the liquidity of the shares.<\/p>\n
Reversing this process, however, will not guarantee that Bank
\nDanamon's share prices will increase, Arwin said.<\/p>\n
He said this was due to the sluggish condition of the market.<\/p>\n
The local stock market has been in a dormant condition over
\nthe past couple of years due to a combination of economic woes
\nand political instability.<\/p>\n
Barito<\/p>\n
Meanwhile, publicly listed timber company PT Barito Pacific
\nTimber said on Thursday its bondholders had approved its proposal
\nto reschedule the payment of bond principals worth Rp 400 billion
\n(US$35.1 million) until 2007.<\/p>\n
The bonds, which were issued in 1997, will mature in 2002.<\/p>\n
Company president Yohannes Hardian Widjonarko said the
\nbondholders agreed with the rescheduling on Wednesday because
\nthey believed that the company's woes would be over in the next
\nfew years.<\/p>\n
The company suffered massive net losses of Rp 1.02 trillion
\nlast year due to the rise in non-operating costs, he said,<\/p>\n
\"We're concentrating on completing the restructuring program
\nthis year as we have had no problems with our sales progress,\" he
\ntold reporters after the company's shareholders meeting.<\/p>\n
He refused to provide this year's projection.<\/p>\n
He added Barito was also negotiating with its foreign
\ncreditors including Credit Suisse First Boston, ING Bank N.V.,
\nSingapore-based Credit Lyonnais to restructure its debt of $355.7
\nmillion.<\/p>\n
In the meeting, the shareholders appointed Juhannes Djalimin
\nas the new vice president, replacing Susana Sutanto, who is going
\nto retire.<\/p>\n
Prior to his new appointment, Juhannes was one of the company
\ndirectors.<\/p>\n
Humpuss<\/p>\n
Separately, publicly listed Humpuss Intermoda Transportasi
\nsaid Thursday it was confident it would reach its net profit
\ntarget of Rp 216 billion (US$1.90 million) this year due to
\nstrong performance in the first quarter.<\/p>\n
Company president Budhi Halim said that last year its net
\nprofits stood at Rp 432.89 billion, mainly as a result of the
\nsale of its subsidiary, PT Humpuss Terminal Petikemas.<\/p>\n
During the first quarter of this year, the company booked a Rp
\n65 billion in net profit, or about 30 percent of this year's
\ntarget, according to Budhi.<\/p>\n
\"We have received more orders from our clients. Demands are
\nstill growing,\" he told reporters after the company's
\nshareholders general meeting.<\/p>\n
Humpuss' business includes sea transportation of liquid cargo,
\noil, liquefied natural gas (LNG) and methanol. The company was
\nfounded in 1992 by Sigit Harjojudanto and Hutomo \"Tommy\" Mandala
\nPutra, respectively, the eldest and the youngest son of the
\ncountry's former authoritarian leader president Soeharto.<\/p>\n
It has entered into contracts with Pertamina to carry its oil
\nand LNG.<\/p>\n
The company, through its subsidiary Humolco Inc., also
\nprovides vessel management services to several firms.<\/p>\n
In the meeting, the company's shareholders agreed to pay a
\ndividend of Rp 50 per share for the year 2000. (05\/bkm)<\/p>",
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