CP Prima's rights issue

JAKARTA (JP): PT Central Proteinaprima (CP Prima) yesterday obtained approval from its shareholders to issue rights shares to raise funds of Rp 27 billion (US$11.4 billion).

A company director, Johannes Sudirto, announced after an extraordinary shareholders meeting yesterday that for the issue, holders of 20 old shares will be eligible to buy one new share at Rp 1,800.

The company's shares closed at Rp 2,250 on the Jakarta Stock Exchange yesterday.

Sudirto said proceeds from the issue will be used to partially finance a planned share acquisition in PT Central Pertiwi Bretasena, a shrimp feed company.

In a meeting last week, the shareholders approved the plan to acquire a 48 percent stake in Central Pertiwi at a cost of Rp 75 billion.

Sudirto said that rights shares will be listed on the Jakarta Stock Exchange in July while the trading period of the shares will last from July 2 to July 31.

CP Prima is a publicly-listed producer of day-old chicks and shrimp feed. (alo)