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