Mayora to split stocks

Mayora to split stocks

JAKARTA (JP): PT Mayora Indah, a publicly listed food
processing company, will split its shares to improve the
liquidity of its trading on local exchanges, an executive said.

The company's director of finance, Hermawan Lesmana, said
yesterday that the stock split will cut the prices of the shares
to Rp 500 (22 U.S. cents) each from Rp 1,000 at present.

He said the stock split plan was approved by shareholders in
an extra-ordinary meeting yesterday.

In addition to the stock split, Hermawan also announced the
company's plan to distribute two bonus shares for every one
existing share.

Hermawan said that the bonus shares will be issued from the
companies' agioes (gains from the increase in share prices during
their initial public offering), not from the company's retained
earnings.

Mayora Indah, which is listed on the Jakarta Stock Exchange,
is 52.64 percent owned by PT Unita Branindo, 5.08 percent by PT
Mayora Investama, 42.01 percent by public investors and the
remainder by a number of parties with an ownership of below one
percent.

Hermawan said that this year, Mayora Indah is projected to
gain a net profit of Rp 52 billion.

The company's net profit decreased to Rp 22.3 billion in the
first six months of 1995 from Rp 24 million for the same period
last year, even though its sales increased to Rp 152 billion from
Rp 120 billion.(31)