Makindo changes core business

JAKARTA (JP): Shareholders of publicly listed securities company PT Makindo approved on Monday the management's proposal to transform the company into a holding company which will focus on investment banking.

The company said it would transfer its assets and liabilities related to brokerage activities to a new securities company as part of the change in its business orientation.

"Besides forming a securities company (a new subsidiary), Makindo also plans to expand its business range by forming two new subsidiaries in the fields of direct investment and information technology," said company president Gunawan Yusuf.

Makindo will use its existing cash balance to finance the paid-up capital of the new subsidiaries.

"Rp 25 billion will be allocated for the new securities company and Rp 1 billion each for the two subsidiaries," he said after the company's annual and extraordinary shareholders meeting.

The shareholders also approved a dividend distribution of Rp 20.89 per share for the 1999 financial year.

In addition, they also agreed to distribute up to four million warrants to the company's employees as part of the employees' stock option program. (udi)