Dharmala Intiland to issue rights shares

JAKARTA (JP): PT Dharmala Intiland, a property company, yesterday announced its plan to offer rights shares at Rp 2,500 (US$1.16) each to generate funds for its project expansion.

Dharmala's president, Hendro Santoso Gondokusumo, told reporters after the company's extraordinary shareholders meeting here that its shareholders have agreed on the issuance of 81.20 million rights shares with a total value of Rp 203.02 billion.

"Sixty five percent of the proceedings from the rights issue will be used for the expansion of its luxury housing and office facilities in Cikini, Taman Kemang Indah and Gandaria, all in Jakarta" he said, adding that 30 percent of the funds will be lent to subsidiaries and the remaining five percent will be used to increase working capital.

He said that a 10-story office building project in Cikini, Central Jakarta, will cost Rp 29 billion and the four towers with 16 stories each in Taman Kemang Indah will cost Rp 107 billion.

The construction of the office building will be finished this year and the condominium in 1996, he added.

He said his company will spend Rp 30 billion for the Gandaria housing project in South Jakarta.

The three projects are part of Dharmala's 13 projects in Jakarta and Surabaya with a total investment of Rp 1.26 trillion.

Hendro said the planned rights issue, which has been approved by the Capital Market Supervisory Board, will increase its authorized capital to Rp 500 billion from Rp 200 billion at present.

He added that holders of two existing shares will be entitled to buy one rights share.

Hendro said the company's consolidated after-tax profit almost doubled to Rp 22.55 billion last year from Rp 12.17 billion a year earlier.

"I expect that the after-tax profit will reach Rp 49 billion this year because some of our 13 new projects will be operational," he said.

Yesterday's meeting approved the payment of cash dividends of Rp 16.24 billion or Rp 100 per share in July. (fhp)