PT. Bakrie plans to issue bonus shares

JAKARTA (JP): PT Bakrie and Brothers plans to issue bonus shares worth Rp 322.32 billion (US$136 million) as part of the company's plan to increase its paid-up capital.

The group's president, Tanri Abeng, said the group would propose the bonus share issue at the company's general shareholder meeting in May.

"Shareholders are entitled to have three new bonus shares for each 10 shares they hold," Tanri Abeng said after the company's extraordinary general shareholder meeting Wednesday.

He said the company issued bonus shares worth Rp 726.57 billion last November. This means the total value of bonus shares issued will be worth Rp 1.048 trillion.

The issue will increase the company's paid-up capital from Rp 968.7 billion to Rp 1.5 trillion.

The increase would be made by injecting the money from selling the group's stake in PT Indocopper Investama, Tanri said.

The shareholders meeting approved the sale of the company's 49 percent stake in PT Indocopper Investama Corporation, which owns 9.36 percent of copper and gold mining firm PT Freeport Indonesia, to PT Nusamba Mineral Industri, which is controlled by timber tycoon Mohammad "Bob" Hasan.

The sale is worth Rp 724.3 billion (US$302.65 million).

"The mining business is not included the core businesses of Bakrie and Brothers," Tanri said explaining why the company sold its stake.

Of the net proceeds, US$200 million will be used to repay the company's short term debt and the rest to finance the company's core business.

The company's core businesses are telecommunications, infrastructure and plantations.

The company's net profit was about Rp 190 billion in 1996 and is projected to rise to Rp 235 billion in 1997 and to Rp 300 billion in 1998.

He said the firm expected revenue of Rp 1.3 trillion in 1996, Rp 3 trillion in 1997 and Rp 5.3 trillion in 1998. (09)