Firm to issue rights shares

Firm to issue rights shares

SURABAYA (JP): A publicly-listed pulp and paper manufacturer, PT Surabaya Agung, will carry out a rights issue worth Rp 126 billion (US$54.6 million) in March to finance its capacity expansion.

The company's finance director, Sindhu Tjahjana Sulistyo, told journalists after an extraordinary shareholders meeting here yesterday that the company will offer three new shares at Rp 1,000 each for four old shares, attached to one warrant which can be converted into one ordinary share within five years.

Sindhu said 70 percent of the total proceeds will be used to finance capacity expansion, and the remaining 30 percent to add to the company's working capital.

He added that company plans to raise its annual production capacity by 150,000 tons to 330,000 tons.

PT Morgan Grandfell Asia Indonesia will act as the underwriter of the rights issue. (15/08)