Thu, 11 Mar 1999

Bayer plans rights shares

JAKARTA (JP): Publicly-listed PT Bayer Indonesia plans a rights issue before the end of June to improve its financial structure.

In anticipation of the limited public offering, the company's shareholders approved a proposal on Wednesday to double its authorized capital to Rp 64 billion (about US$7.1 million), the company said in a statement on Wednesday.

The company said proceeds of the rights issue are to be used to increase the ratio between its equity and assets to 23 percent from the current 17 percent.

"With the current high market interest rate, the company wants to lessen its burden of interest charges by strengthening its financial structure," it said.

Bayer will hold an extraordinary general meeting of shareholders on April 30 to obtain their approval of the planned rights issue.

Bayer Indonesia is owned by Bayer AG of Germany (60 percent), PT PD Djawa Maluku (7.65 percent), Zaitun Osman (2.35 percent), state securities company PT Danareksa (2.49 percent), the public (12.51 percent) and others (15 percent).

The company's lines of business are in consumer care, pharmaceuticals and crop protection. (02)