PSN plans listing on local stock exchanges
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)