Bakrie offers bonus shares

JAKARTA (JP): Shareholders of publicly-listed PT Bakrie & Brothers, a widely-diversified business group, yesterday approved a plan to issue three bonus shares for every old share, according to company director Joseph Inkiriwang.

Speaking after an extraordinary shareholders meeting, he said the bonus shares would be derived from its agio, the share price premium obtained from its trading on the capital market.

The company's shares, which were split in May to cut share prices from Rp 1,000 (44 U.S. cents) to Rp 500, were worth Rp 3,375 on the Jakarta Stock Exchange on Thursday.

Joseph said that with the 1.45 billion bonus shares, the firm would have 1.94 billion shares, each with a nominal price of Rp 500. Its paid-up capital would also increase from Rp 263.25 billion to Rp 968.76 billion.

He said the bonus share issue would strengthen the company's capital structure and improve its liquidity on capital markets. (bnt)