Plaza Indonesia to issue rights shares

JAKARTA (JP): PT Plaza Indonesia Realty, the owner of the Jakarta Grand Hyatt hotel which posted a net profit of Rp 23.9 billion (US$11.16 million) last year, will make a rights issue of 115 million shares at a price of Rp 1,750 each.

The planned issuance, which was approved by an extraordinary meeting of shareholders yesterday, will enable a holder of two shares to buy a new share.

Plaza Indonesia's corporate secretary, Sylvia Ratulangi, told a press conference that 70 percent of the funds to be raised by the rights issue will be used for repaying the company's long- term debt and the remaining 30 percent for increasing its working capital.

The issuance of these new shares will increase the company's public stocks from 230 million to 345 million shares, each with a nominal value of Rp 1,000.

Sylvia said at the annual shareholders meeting, which was chaired by company president Bambang Trihatmodjo, a son of President Soeharto, the company reported a 128 percent increase in net profits and a 6.1 percent increase in sales turnover to Rp 124.4 billion.

She said Grand Hyatt Jakarta last year continued to maintain its status as a top-level hotel, with an average increase in room rates by 2.5 percent to $200.7.

Sylvia said the occupancy rate of the company's Plaza Indonesia shopping mall was 99.1 percent last year, up by 0.5 percent from 1992. The mall grossed Rp 286 million in revenues last year, a one percent increase from the previous year.(10)