Bayer plans rights shares

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)