Dharmala Insurance to issue bonus shares<\/p>\n
JAKARTA (JP): The shareholders of publicly-listed insurance
\ncompany PT Dharmala Insurance have approved a plan to issue of
\nfour bonus shares for five old shares, company president Suhanda
\nWiraatmadja said yesterday.<\/p>\n
Speaking after the company's extraordinary shareholders
\nmeeting, Suhanda said that the bonus shares will be distributed
\non Feb. 22, 1996. They will be derived from the capitalization of
\nthe capital gains obtained through the company's initial public
\noffering in 1989, which amounted to Rp 7.86 billion (US$3.4
\nmillion), he said.<\/p>\n
Suhanda said the bonus share issue will increase the company's
\npaid-up capital from Rp 9.82 billion to Rp 17.68 billion.<\/p>\n
He acknowledged that the current paid-up capital is too small
\nto allow the company to grow because its underwriting capacity is
\nseverely limited.<\/p>\n
Suhanda said the issue is expected to boost the liquidity of
\nthe company's shares on the stock market, which are now traded at
\nRp 2,000 each, because the share price will drop to Rp 1,111
\nafter the bonus share issue.<\/p>\n
Dharmala Insurance, which is 67-percent owned by PT Dharmala
\nSakti Sejahtera, a unit of the Dharmala Group, had total assets
\nof Rp 34.89 billion as of December 1994. Its net profit dropped
\nfrom Rp 267 million in 1993 to Rp 148 million last year.<\/p>\n
Suhanda said the company's net profit is projected to reach Rp
\n2 billion this year, due mainly to a sharp increase in its
\nunderwriting income, which is expected to reach Rp 5.4 billion
\nthis year. Earnings per share are also set to rise from Rp 15 to
\nRp 114, he said.<\/p>\n
He added that yesterday's meeting also appointed Tanadi Iwan
\nSaputra Tanjung as the company's director of marketing, a new
\npost on the board of directors. (08)<\/p>",
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