Kramat-Kartika swap<\/p>\n
KUALA LUMPUR (Reuter): Malaysia's Kramat Tin Dredging Bhd's
\nplan to buy shares in an Indonesian timber firm via a share swap
\nhas been approved by the Securities Commission, a company
\nstatement said.<\/p>\n
The commission has also given conditional approval for a bonus
\nissue following completion of the swap.<\/p>\n
In an announcement late last year, Kramat Tin said that in a
\nmove to penetrate Indonesia's timber industry, it would acquire a
\n31.86 percent stake in Indonesia's PT Artika Optima Inti (AOI)
\nvia a share exchange.<\/p>\n
AOI, an integrated plywood manufacturer, is part of the
\nDjajanti Group which is controlled and managed by Burhan Uray.<\/p>\n
The commission set as one condition for its approval that Uray
\nshould pay the shortfall to Kramat if an initial public offering
\nof the AOI shares on the Jakarta Stock Exchange was less than
\nthree ringgit per share.<\/p>\n
The second condition was Uray would also pay for the shortfall
\nif AOI's after tax profit is less than the 127.3 million ringgit
\na year guaranteed under the agreement.<\/p>\n
AOI has been granted concessions on 849,100 hectares of forest
\nlocated in Maluku and Irian Jaya and holds other concessions
\nunder the group.<\/p>\n
AOI is set to be one of the largest capitalized stocks on the
\nJakarta exchange with its proposed listing.<\/p>",
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