SES reprimands Johannes Kotjo

SES reprimands Johannes Kotjo

SINGAPORE (Reuter): The Stock Exchange of Singapore publicly reprimanded Indonesian businessman Johannes Kotjo for creating a false market in the shares of United Pulp & Paper and banned him and his nominees from holding new directorships for 30 months.

The SES said in a statement yesterday that Kotjo, a prominent investor in the Singapore stockmarket and currently a director of Van der Horst Ltd and ABR Holdings Ltd, had made misleading statements about UPP shortly after launching a potential takeover bid for the company on Nov.9.

"The exchange hereby reprimands Mr Kotjo for his conduct, and rules that Mr Kotjo and his nominees must not hold directorships in listed companies other than Van der Horst and ABR for a period of 30 months," the SES statement said.

Kotjo was part of group of Indonesian investors who agreed a series of options in November to buy 43.5 percent of UPP.

The options, which are valid until Jan. 31, 1996 and priced at S$1.10 per share, would trigger a formal takeover of UPP if exercised.

The SES said Kotjo had made a series of optimistic statements about UPP and its prospects under new ownership via a published interview on Nov. 10.

The SES noted UPP's share price then soared to close at S$2.07 on the same day on high volume. The share stood at S$1.21 when trading in the company was suspended on Nov. 2.

It said Kotjo later said some of the interview had been taken out of context and "he was merely expressing his own opinion".

But the SES said Kotjo should not have made personal or speculative comments about the company at that time.

"The exchange's Corporate Disclosure Policy states that where there has been a misleading press report, directors should immediately clarify or rebut any inaccuracies," the SES said.