PSN plans listing on local stock exchanges

JAKARTA (JP): Satellite communications provider PT Pasifik Satelit Nusantara (PSN) said on Wednesday it would list its shares on the Jakarta or Surabaya stock exchange after completing a debt-restructuring program with the Indonesian Bank Restructuring Agency (IBRA).

PSN's president, Adi R. Adiwoso, said the company, which is currently listed on the Nasdaq, expected to finalize the restructuring of its US$213 million debts with all the lenders through IBRA this year.

"If the local stock market is contusive and we have concluded the debt-restructuring program, we can possibly proceed with the listing plan before the end of the year," he said after company's shareholders' meeting.

He said the company expected the local listing would increase the awareness of local investors to PSN.

In addition to the local listing plan, shareholders also approved during the meeting the management's proposal to issue 56 million new shares to boost its working capital.

Adiwoso said the company expected to raise more than $152 million from the issuance of the new shares.

He acknowledged that PSN's satellite communications business was seriously affected by the economic crisis that has hit many Asian countries since 1997.

He said PSN lost several of satellite-transponder leasing clients last year because the latter were having financial problems and could not meet their PSN contractual obligations.

PSN was earlier forced to temporarily suspend the construction of its new satellite M2@ in 1998 due to the financial crisis, he said.

"The proceeds from the rights share issuance will partly be used to finance the restarting of M2@ satellite project," he said, adding that providing the funds-raising plans succeeded the M2@ satellite is expected to be launched in the next two years.

Upbeat

Adiwoso said he was upbeat that PSN would see better business this year and ahead as the demand for satellite-transponder leases had gradually increased.

The company leases satellite-based radio and television transponders from its Garuda 1 satellite, which was launched in February from Kazakhstan, to broadcasting and other telecoms companies in the region.

PSN reported a net loss of $30.53 million in 1999, as against a 1998 net loss of $21.19 million.

PSN is currently controlled by PT Telkom with a 27.57 percent share, PT Elektrindo Nusantara, 21.12 percent, PT Primaupaya Lintasswara, 9.40 percent, and PT Skaisnetindo Teknotama, 8.40 percent.

The company is also owned by Hughes Space and Communication International Inc. with a 9.23 percent share, Telesat Canada, 7.23 percent, and the public, 19.58 percent. (cst)