Govt to issue ruling on mergers

Govt to issue ruling on mergers

JAKARTA (JP): The government will issue a ruling on
acquisitions, mergers, divestment, joint ventures, restructuring,
break-ups and joint operations, the minister of justice, Oetojo
Oesman, said yesterday.

Oetojo said "we have to follow the strong current of economic
changes if we don't want to miss opportunities arising from
burgeoning free trade," Oetojo was quoted by Antara as saying.

The draft ruling was being processed by a special team,
comprising Ministry of Justice and the Capital Market Supervisory
Agency officials and professionals like accountants.

Oetojo said the special team was open to input from the
public.

The minister said the new ruling would bridge the differences
between the 1995 Limited Liability and Capital Market laws.

Both laws govern acquisitions and mergers but there are some
differences.

The limited liability law lets shareholders float their shares
at prevailing market prices irrespective of minority
shareholders' interests.

But the capital market law requires more disclosure from
publicly-listed firms to protect minority shareholders.

"In essence, the two laws have the same mission on this
matter, and the new ruling will clarify this," Oetojo said.

The chairman of the Capital Market Supervisory Agency, I Putu
Gede Ary Suta, said the new ruling would provide legal certainty
and encourage business activity.

Putu said publicly-listed companies should pursue acquisitions
and mergers only to improve efficiency and market value. (rid)