C&C ups Astra stake to 34.3%<\/p>\n
Dow Jones, Singapore<\/p>\n
Motor vehicle distributor Cycle & Carriage Ltd. said Wednesday
\nit has raised its stake in Indonesia's PT Astra International to
\n34.3 percent from 31.1 percent.<\/p>\n
C&C subscribed to 553.4 million Astra rights shares,
\ncomprising its own entitlement as well as Toyota Motor Corp.'s
\nentitlement, for US$77.7 million.<\/p>\n
In addition, C&C acquired 11.3 million Astra shares from the
\nmarket for $2.8 million.<\/p>\n
The acquisition of the shares was funded from internal
\nresources and external borrowings, the company said. It had
\nobtained a loan facility of up to S$100 million ($57 million) on
\nJan 21.<\/p>\n
C&C said the increased shareholding is in line with its
\nobjective to consolidate and enhance its position in the
\nSoutheast Asia automobile sector.<\/p>\n
It added that it believes Astra will continue to maintain its
\ndominant position in the Indonesian automotive and motorcycle
\nmarkets and contribute positively to C&C because of its good long
\nterm prospects.<\/p>\n
C&C also said the rights issue - at a steep discount to the
\ncurrent share price - represented an "excellent opportunity" to
\nincrease its shareholding.<\/p>\n
The company said the financial impact of the purchase of
\nrights shares on its earnings per share will be disclosed when it
\nannounces its financial results for the year ended Dec. 31,
\nexpected around Feb. 25.<\/p>\n
Astra offered 1.4 billion new shares at Rp 1,000 each to
\nshareholders via a rights issue on Dec. 18, at a ratio of seven
\nnew shares for every 13 held.<\/p>\n
The exercise to raise up to Rp 1.43 trillion was intended to
\npartly reduce its debt.<\/p>",
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