Aneka to expand into chemical production

Aneka to expand into chemical production

JAKARTA (JP): Publicly-listed chemical product distributor PT
Aneka Kimia Raya got its shareholders' approval yesterday to
purchase shares of two chemical producers, PT Polekao Indonesia
Chemicals and PT Arjuna Utama Kimia, at Rp 26 billion (US$11.3
million).

Aneka's president, Haryanto, told journalists after an
extraordinary meeting of the shareholders that the company will
own a stake of 40 percent in Polekao and 22.38 percent in Arjuna.

Polekao is a joint venture company set up in 1977 by PT
Polekao Indonesia and KAO Corporation of Japan for the production
of specialty chemicals such as surface active agents.

Arjuna Utama is also a joint venture company between Mitsui
Toatsu Chemicals (Asia) Ltd. and Mitsui & Co. Ltd., both of
Japan, and PT Poleko Trading Coy.

"The purchase of the two companies' shares will strengthen our
position not only as a chemical product distributor but also as a
chemical producer," said Haryanto.

Yesterday's meeting also approved the management's proposal on
the distribution of six bonus shares to the holders of each 10
old shares.

"We will capitalize Rp 39 billion of the capital gains derived
from our initial public offering in 1994 into 39 million bonus
shares. The distribution of the bonus shares will raise the
company's total listed shares to 104 million," said Haryanto.

Arjuna Utama posted an after-tax earning of Rp 2 billion from
total sales of Rp 19.5 billion in the first eight months of last
year.

Haryanto added that the management also briefed the
shareholders on a plan to set up a joint venture company with
Dai-ichi Kogyo of Japan to produce specialty chemicals.

"The proposed joint venture will have a paid-up capital of
US$1.8 million, of which Aneka Kimia will own 49 percent," said
Haryanto. (08)