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)