Kanindotex shares for co-ops

Kanindotex shares for co-ops

SEMARANG, Central Java (JP): PT Kanindotex has sold 25 million
of its shares to 270 cooperatives from various parts of the
country.

The agreements on the share sales, which are favorable to the
cooperatives, were signed here Thursday in a ceremony attended by
Minister of Cooperatives and Small Enterprises Subiakto
Tjakrawerdaya and Central Java Governor Soewardi.

Minister Subiakto said that the cooperatives are expected to
refrain from reselling the shares to other parties. He added that
they are to use the funds generated from the share ownership to
increase their capital.

Under the arrangement, the cooperatives will pay for the
shares in installments, with 75 percent of the dividends received
from the company. The cooperatives can use the other 25 percent
of the dividends for their own operations. (har/ste)