Mulia to split its stocks to oil trading liquidity

Mulia to split its stocks to oil trading liquidity

JAKARTA (JP): Shareholders of publicly listed Mulia
Industrindo approved yesterday a proposal to split the company's
nominal share value to Rp 500 (20 U.S. cents) from Rp 1,000.

Hendra Heryadi, the company's managing director, said the
split would double the amount of shares to 1.32 billion.

"The additional shares will be listed on the exchange on March
17," he said after an extraordinary meeting of shareholders.

He said the stock split, which would automatically cut the
share price by 50 percent, aimed to improve the trading liquidity
of the shares.

The company also announced yesterday that its subsidiary Mulia
Industrindo Finance BV had just signed an US$80 million loan
agreement with several foreign banks.

The loan was arranged by American Express Bank Ltd., Credit
Lyonnais, J.P. Morgan Securities Asia Ltd. and Sakura Merchant
Bank Ltd. from Singapore.

The loan, which will be used to finance the expansion of PT
Muliaglass, a producer of glass sheets, glass and bottles: some
of which are exported to Asia, Australia, Europe and Africa.

The company made 1,100 tons of glass a day, but it planned to
increase this to 1,700 tons in June, Hendra said.

Hendra said Muliaglass planned to produce new safety glass to
supply the country's growing car industry. He said he was
optimistic that the company could supply safety glass for around
120,000 cars a year.

"The product will be marketed in July," he added.

During the meeting, shareholders also approved management's
plan to set aside between 1 percent and 2 percent of its net
profit to support the government's poverty eradication program.
(02)