Bayer issues rights shares

Bayer issues rights shares

JAKARTA (JP): PT Bayer Indonesia's shareholders approved
yesterday the company's plan to issue rights shares later this
year.

The company said yesterday that it expected to raise around Rp
24.84 billion (US$6.90 million) from the sales of 15.49 million
new shares in the limited public offering.

The company's president W. Piroth said that the new shares,
each with a par value of Rp 10,000, are to be comprised of 2.32
million Series B shares and 13.17 million Series A shares.

The Series B shares will be sold at Rp 1,625 each while those
of the Series A will be sold at Rp 1,600.

Existing shareholders would be allowed to buy one new share
for every old share they hold, he said.

He added that if existing shareholders did not want to buy
their rights, Bayer AG, the majority shareholder, would buy their
shares at the same prices.

Bayer's finance director Von Podewils said that around 52
percent of the proceeds from the offering of the rights shares
would be used to buy new equipment, while 27 percent would be
used to finance the expansion of the company's warehousing
capacity. (aly)