CMNP to raise Rp 500b from rights shares

CMNP to raise Rp 500b from rights shares

JAKARTA (JP): Publicly listed toll road operator PT Citra
Marga Nusaphala Persada (CMNP) will issue rights shares next
month at a ratio of one to one to raise about Rp 500 billion
(US$208.33 million).

Citra Marga's director Tito Sulistio said yesterday the
company would issue one billion shares with a par value of Rp 500
a share.

"The new shares will be listed on the stock exchanges on July
7," he said after the company's annual shareholders' meeting.

Tito said proceeds from the public limited offering would
finance a 36.6 kilometer road project in Surabaya.

The company is now building the toll road connecting Waru near
the Surabaya airport of Juanda to Tanjung Perak seaport with a
total investment of about Rp 1.3 trillion.

Construction started in March and is expected to be completed
in 2001.

Citra Marga's chairwoman, Siti Hardijanti Rukmana -- who is
popularly known as Mbak Tutut -- recently said that the road
would be built in three stages.

The first stage covering 14.4 kilometers from Juanda to Waru
is due to be completed in 1999. The second stage spanning 11.1
kilometers from Tanjung Perak to Kenjeran is to be completed in
2000. The third phase stretching 11.3 kilometers from Tanjung
Perak to Tambak Oso is scheduled for completion in 2001.

Tito said Citra Marga had earlier issued rupiah bonds worth Rp
275 billion and Eurobonds valued at about Rp 300 billion to
finance the project.

He said the company expected a 25 percent increase in net
profit to Rp 154 billion in 1997, up from Rp 123.63 billion in
1996.

In the first quarter alone, the company booked a Rp 32 billion
net profit.

The company's president Teddy Kharsadi said Citra Marga was
considering expanding overseas to countries including Turkey,
Mauritius, Poland, Hungary and Rumania.

"We will go to Eastern Europe later this month to look into
business opportunities there," he said. (09/13)