JSX to delist Procter & Gamble shares

Sari P. Setiogi, The Jakarta Post, Jakarta

The Jakarta Stock Exchange (JSX) has decided to delist PT Procter & Gamble Indonesia Tbk (P&GI) as the company's contract with Singapore-based Procter & Gamble International Operation Pte. on product distribution and "toll manufacturing" has been terminated.

The bourse said it had a strong reason to delist the firm as the contract with the Singaporean firm was the main contributor to its revenue.

The termination of the contract between P&GI and the Singaporean firm will come into effect on June 1, 2004.

P&GI's president director Raul T. Falcon earlier stated in his letter in The Jakarta Post that the firm will close its health care production plant in Bekasi, West Java, which produces Vicks products, by around July 2004.

The bourse ordered either the company or its majority shareholders to buy back shares held by minority shareholders at the highest price level over the past 90 days. The company was also told to appoint a member of the stock market as a standby buyer of the minority shares.

"Shares will be suspended from the market until Oct. 28. After that, interested players can sell or buy their shares through the negotiation market for 20 days until Dec. 2," said JSX's head of trade division, Supandi.

On Dec. 3, the P&GI shares will no longer be traded at the JSX.

According to Falcon, after P&GI closes its Bekasi plant next year, PT Darya Varia Laboratoria will take over its Vicks license and production.

In 2000, the company shut down its haircare products plant and relocated it to Thailand, which has become the group's hub for the Southeast Asian region. The haircare plant produced among others Rejoice shampoo and Pantene haircare.