PT. Bakrie plans to issue bonus shares

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)