Komatsu plans JSX delisting

Publicly listed PT Komatsu Indonesia, a local unit of Japan's heavy equipment company Komatsu Ltd., announced on Thursday its plans to change its status to a private foreign investment firm and delist its shares from the Jakarta Stock Exchange (JSX).

In its press statement, Komatsu Indonesia said that in connection with the delisting and go-private proposal, its parent company would make a tender offer to acquire the shares in Komatsu Indonesia owned by others.

Komatsu Ltd. owns a 68.42 percent stake in its Indonesian unit.

Komatsu Ltd. will offer to the public shares at Rp 8,500 each, which is a 48.8 percent premium to the minimum price of Rp 5,712 per share that could have been offered under Indonesian regulations.

The price is also a premium of 58.9 percent to the company's highest traded price over the last 12 months of Rp 5,350 per share. It is also a premium of 61.9 percent to the last traded price of the company's shares of Rp 5,250 per share prior to its trading suspension on Aug. 11.

According to Komatsu Indonesia, the delisting is in line with the global policies of Komatsu Ltd, which consistently delisted its shares from various stock exchanges recently, including from the Nagoya Stock Exchange, the Sapporo Securities Exchange, the Fukuoka Stock Exchange, the Frankfurt Stock Exchange and the Luxembourg Stock Exchange.

Komatsu Indonesia submitted the delisting proposal to the JSX on Aug. 11. The JSX has suspended trading in the company's shares as of Thursday, on the company's request, until further notice.

An extraordinary general meeting of shareholders will be held on Sept. 21 to seek the approval of shareholders for the proposal. -- JP