JSX lifts suspension of Ades shares
JSX lifts suspension of Ades shares
The Jakarta Post, Jakarta
The Jakarta Stock Exchange (JSX) resumed trading on Friday in
the shares of beverage company PT Ades Alfindo Putrasetia after a
three-month suspension following problems with its audited
financial reports.
The bourse decided to lift the suspension after the company
agreed to pay a fine of Rp 150 million (about US$16,400), and
acknowledge the second warning letter sent by the bourse to the
company on Tuesday.
The bourse decided to fine Ades as the company had made
negligent statements in its audited financial reports regarding
inconsistencies in its sales volumes, which resulted in a number
of problems.
After the suspension was lifted, Ades shares leaped by 21
percent to a record high of Rp 3,650 in intraday trade, before
falling back to close at Rp 2,925, down by Rp 75 from its opening
price of Rp 3,000.
JSX trading director Sihol Siagian told The Jakarta Post that
there had been no indications of price manipulation or insider
trading in the dramatic rise in Ades shares during the first
trading session, as the jump was primarily due to the value of
the shares being brought up to date after they had been suspended
for some time.
"The leap was obvious, and there was nothing wrong with that.
The shares declined in price afterwards as investors were still
concerned with problems with the company's financial reports,"
said Sihol.
The JSX suspended trading in Ades shares from July 26 until
Aug. 2 after a dramatic rise in their value. The rise was partly
the result of a report from Ades to the bourse that Swiss-based
company Water Partners Bottling SA had bought a 65 percent stake
in the beverage firm.
Water Partners is a joint venture company set up by Swiss-
based Nestle SA and Refreshment Product Service Inc., a
subsidiary of Coca-Cola Co., the world's largest beverage
producer.
After Ades management clarified the report, the JSX lifted its
suspension on Aug. 3. However, the bourse decided to halt trading
of the shares again on Aug. 5 following unexplained movements in
the Ades share price and discrepancies in its sales volumes.
The discrepancies were uncovered when Coca-Cola reported the
case to the U.S. Securities and Exchange Commission, stating that
Ades had inflated its sales volumes by two million to 13 million
bottles every quarter since the third quarter of 2001.
In a report to the JSX, Ades' new management acknowledged
possible downward adjustments to the company's 2001, 2002 and
2003 financial reports.
The company said, for instance, that net sales for 2001, 2002,
and 2003 should have been adjusted downward by an estimated 10
percent, 30 percent and 32 percent respectively.