Indah Kiat's rights issue

JAKARTA (JP): The shareholders of publicly-listed PT Indah Kiat Pulp and Paper have endorsed the management's proposal to issue 410.2 million rights shares detachable with 246.1 million warrants.

An executive of the company said after an extraordinary shareholders meeting here yesterday that the issuance of rights and warrants in a package is expected to raise funds of approximately Rp 512.8 billion (US$219.3 million).

In line with the capital market preemptive rule, the company will offer its shareholders the right to buy five new shares at Rp 1,250 each detachable with three warrants for every 20 old shares they own as of April 9.

The 246.1 million warrants can be converted into ordinary shares, from Oct. 15, 1996 to April 13, 2001, at an exercise price of Rp 1,250 each.

The company said that 75 percent of the total proceeds (Rp 384 billion) will be used to finance the expansion of its pulp plant in Perawang, Riau, and a paper mill in Serang, West Java.

The remaining 25 percent will be added to the company's working capital. (08)