Lippo e-Net clarification not enough: MISI executive<\/p>\n
JAKARTA (JP): PT Asuransi Lippo e-Net's clarification
\npublished in Tuesday's newspapers was pointless and gave no
\nanswer to the market confusion about the insurance company,
\naccording to the Indonesian Securities Investors' Society (MISI).<\/p>\n
\"There is yet no clear consensus regarding Lippo e-Net,\" MISI
\nexecutive Johanes Soetikno told reporters on Tuesday.<\/p>\n
Lippo e-Net, as required by the capital market watchdog,
\npublished on Tuesday one full newspaper page clarifying
\ninconsistent statements previously made by the company.<\/p>\n
\"Effectively, is it really an insurance company, an Internet
\ncompany or just a holding company? Sorry, I cannot tell you,\"
\nJohanes added.<\/p>\n
The company announced in late January hat it had transformed
\nitself into an Internet company, but Tuesday's clarification
\nliterally said the insurance company had not yet changed its core
\nbusiness which was currently an insurance business.<\/p>\n
\"Lippo e-net has not changed its business status. The company
\nplans to hold a shareholders meeting in June, 2000 to approve the
\ncompany's change of business,\" said Tuesday's clarification.<\/p>\n
The company is still an insurance company and still directly
\nmanages the insurance premium proceeds, according to the
\nclarification published in papers on Tuesday.<\/p>\n
The listed insurance company said it had transferred over 99
\npercent of its premium proceeds to its non-listed affiliate, thus
\nstill managing less than one percent of the proceeds directly.<\/p>\n
Johanes said Tuesday's clarification was just a means used by
\nLippo e-Net to look for justifications to erase its past sins by
\nsimply making modified, or even new, statements to the public.<\/p>\n
Johanes said Lippo e-Net announced in early January it would
\nimmediately invest at least Rp 1 trillion in the Internet
\nbusiness.<\/p>\n
But with the clarification the company modified the statement
\nby stating that the disbursement of the Rp 1 trillion fund is
\ngradual and conditional to the controlling circumstances and
\nother developments which may arise over time.<\/p>\n
As reported earlier, the Lippo e-Net share price doubled
\nwithin a week following the company's Rp 1 trillion commitment
\nannouncement in January.<\/p>\n
The share price in January surged from Rp 450 at the
\nannouncement to Rp 950 a week later in a very high transaction
\nvolume.<\/p>\n
The peak price then went down consistently.<\/p>\n
On Tuesday it was down by Rp 25 to close at Rp 300.<\/p>\n
\"Lippo e-Net has done damage to public investors by making
\nmisleading statements. The capital market watchdog should have
\nimposed sanctions by now,\" Johanes said.<\/p>\n
He said that a lot of public investors jumped on the
\nbandwagon, being attracted by the increasing price of Lippo e-Net
\nshares in January.<\/p>\n
But the public investors were amazed and sold back their Lippo
\ne-Net shares at a great loss upon learning that the company's
\nInternet dream was actually premature, according to Johanes.<\/p>\n
He said that requiring Lippo e-Net to announce another set of
\nstatements would mean granting the company a chance to excuse
\nitself once again.<\/p>\n
\"Lippo e-Net was making vague statements that it could easily
\ninvite public misinterpretation. And such misinterpretation is
\nalways to the advantage of the company,\" he added.<\/p>\n
Lippo e-Net in its Tuesday clarification stressed the company
\nwould be primarily an insurance business until the changes were
\napproved at the next shareholders meeting in June.<\/p>\n
The clarification also stated that Lippo e-Net would hand over
\nits insurance business permit back to the government after it
\nofficially changed its business status, and then eventually
\ntransfer all the remaining insurance premium proceeds out of the
\ncompany portfolio.<\/p>\n
\"The company also plans to drop the word 'Asuransi' in the
\nfuture from its current official name -- PT Asuransi Lippo e-
\nNet,\" the clarification said.<\/p>\n
Lippo e-Net is listed on the Jakarta Stock Exchange. It
\nchanged its name in late January from PT Lippo Life to PT
\nAsuransi Lippo e-Net. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lippo-e-net-clarification-not-enough-misi-executive-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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