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)