Makindo changes core business

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)