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)