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)