Makindo, Dynaplast to buy back shares

Makindo, Dynaplast to buy back shares

JAKARTA (JP): Shareholders of publicly listed securities
company Makindo and plastics components manufacturer Dynaplast
approved on Tuesday plans to buy back up to 10 percent of the
companies' shares from the public.

Makindo Chief Executive Gunawan Jusuf said the shareholders
had approved to use Rp 118.8 billion (US$16.97 million) taken out
of the company's retained earnings to buy back up to 87.7 million
shares, forgoing to pay out dividends.

"After the buyback, shares held by the public will be reduced
from 47 percent to 37 percent," Gunawan said.

He said that the buyback will be conducted between July 1 and
July 30.

Total volume of the company's outstanding shares is 877
million, 47 percent of which are currently held by the investing
public.

Gunawan also said he expected the company would book a net
profit of about Rp 60 billion (about US$8.57 million) in the
first half of the year, as the first quarter net profit reached
Rp 30 billion.

Makindo posted a net profit of Rp 118.8 billion in 1998, a
47.3 percent increase over 1997.

Dynaplast also received approval on Tuesday from its
shareholders to buy up to 10 percent of its shares through the
stock exchange.

The company said that the buyback will be conducted within 18
months from Tuesday's shareholders approval.

The company said that its current share price is well below
book value, thus, it thought it was the best time to buy back its
shares.

From January to May, Dynaplast booked a net profit of Rp 10
billion.

The Capital Market Supervisory Agency (Bapepam) previously
banned share buying back to protect the public from insider
trading. But the agency later eased the ban to allow listed
companies to improve their undervalued stocks.

In the buyback program, however, Bapepam only allows listed
companies to buy back up to 10 percent of their total shares.
(udi)