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)