JSX warns of delisting companies

JSX warns of delisting companies

JAKARTA (JP): The management of the Jakarta Stock Exchange
(JSX) pledged yesterday to delist companies which no longer meet
listing requirements.

JSX director Mas Achmad Daniri said a delisting measure was
needed to protect investors and encourage listed companies to
improve their business performances.

Media reports said recently that PT Pan Brothers Tex, PT Pool
Asuransi, PT Great Golden Star and PT Langgeng Makmur Plastic
Industry were some of the companies that had fallen foul of the
JSX-set listing criteria.

Daniri said JSX executives acknowledged that some companies
could be delisted but he did not name names.

"We will hold a hearing with executives of the companies to
find out what is really happening with them," he said after a
seminar on strategies to avoid delisting.

Daniri said the hearing would be soon after the companies
annual shareholders' meetings in the coming weeks.

"This is important so the company will have the shareholders'
approval on what steps to take," he said.

According to the exchange's regulation, listed companies which
suffer losses and do not pay dividends for three consecutive
years will be suspended from the market, or delisted.

Companies, whose shares are held by fewer than 100 people and
those whose equity falls below Rp 50 billion, should be also
delisted.

"A company can be also delisted from JSX if there are no
trading transactions in the previous six months," he said.

Daniri said since JSX was established, five companies have
been delisted: PT Singer Industries, PT Prodenta Indonesia, PT
Praxair Indonesia, PT Textronic Permai Indonesia and PT Pfizer
Indonesia.

Singer was delisted on May 5, 1995, Pfizer and Prodenta on
April 27, 1994, Textronic on May 19, 1995 and Praxair on January
15, 1996. (09)