GG fails to get OK to buy plant

GG fails to get OK to buy plant

JAKARTA: Clove cigarette maker PT Gudang Garam said it failed Friday to obtain its independent shareholders' approval for its acquisition plans.

Gudang Garam last month revealed plans to buy a plant, which will produce low-tar and low-nicotine cigarettes, for Rp784.15 billion (US$78.4 million).

It said the acquisition is part of a move to push into the fast-growing low-tar and low-nicotine cigarette market.

The plans need to be approved because the plant is owned by a company controlled by Gudang Garam shareholder and Vice-president Director Susilo Wonowidjoyo.

The company said Monday it couldn't obtain approval because an insufficient number of independent shareholders attended the meeting. --Dow Jones