Shareholders approve BDNI rights share issue

JAKARTA (JP): The extraordinary shareholders meeting of publicly listed Bank Dagang Nasional Indonesia (BDNI) approved yesterday management's plan to issue rights shares to strengthen the bank's capital structure.

BDNI president Sjamsul Nursalim said his bank expected to raise around Rp 615 billion (US$260.5 million) from the issue of rights shares.

"The rights shares would be sold to existing shareholders for Rp 1,450 each," he said, adding that each four old shares would entitle shareholders to buy three new ones.

The bank will also issue warrants as a sweetener for the rights issue.

Funds raised from the rights issue would be used to strengthen the bank's paid-up capital and expand its domestic and overseas networks, he said.

"We will, for example, upgrade the status of its representative in Beijing to a branch office," he said.

He said that around 50 percent of the proceeds from the limited public offering would be used to finance the bank's short-term loans, 30 percent for long-term loans, 10 percent for its network operations and 10 percent to improve its operations.

Sjamsul said the bank planned to install 40 more automated teller machines and set up 25 more branches across the country.

He said the extraordinary shareholders meeting also agreed to to split the nominal share value from Rp 1,000 to Rp 500.

"The aim of the split is to make the stock much more liquid on the stock exchange," he said.

The shareholders meeting yesterday approved the appointment of two new commissioners -- A. Kamardy Arief, a former president of Bank Rakyat Indonesia, and Suyitno Siswowidagdo, a former director of Bank Indonesia -- and Oktariadi Anis as a new director.

The meeting also approved Soetrisno's resignation from his position of commissioner.

The board of directors now comprises Sjamsul as president, R.M.T Harinadji, Husni Ali, Tetty Gozali, Victor Kullit, Fredie, Michael Soetanta and Oktariadi Anis as directors. (09)