Audit sought on Lippo plan

Audit sought on Lippo plan

JAKARTA (JP): Publicly listed Lippo Life's rights issue plan
should be audited by an independent public accountant to ensure
that the limited public offering plan is needed, the Jakarta
Stock Exchange (JSX) said on Friday.

JSX's management that the insurance company should submit the
opinion of an independent auditor to confirm the rights issue was
crucial.

The JSX will also require that Lippo Life set the nominal
value and the exercise price (the price at which the rights share
is sold) of each rights share at the same level of the market
price of the insurance company's shares.

If the average market share for the last 25 trading days was
about Rp 400, JSX said, the nominal value and the exercise rights
of the rights shares would be of the equivalent value.

JSX regulations stipulate that companies can offer their
rights shares above the nominal value as long as the price of
their shares already traded in the market is higher than Rp
500. (udi)