Stock split for Texmaco subsidiaries
JAKARTA (JP): Three listed subsidiaries of the Texmaco Group -- PT Polysindo Eka Perkasa, PT Texmaco Jaya and PT Texmaco Perkasa Engineering -- will split their shares in January to improve the liquidity of stock trading on local exchanges.
The business group announced Thursday that the stock split plan was approved by shareholders in extra-ordinary meetings held separately in the Central Java cities of Pekalongan and Semarang on Wednesday.
Marimutu Sinivasan, chairman of the Texmaco Group, said that the share split is expected to improve the liquidity of the trading of the three companies' shares on the Jakarta and Surabaya stock exchanges.
Polysindo, a manufacturer of polyester fiber, synthetic chips and yarn, will cut the par value of its shares to Rp 500 from Rp 1,000 each at present.
In addition to the share split, the shareholders also approved a proposal to issue a bonus in the form of a new share for every four old shares held by existing holders, he said.
Sinivasan said that the shareholders also approved the distribution of a cash dividend of Rp 93.75 per share and three dividend shares for every four old shares.
Polysindo, listed on the Jakarta Stock Exchange in 1991, booked a net profit of around Rp 89 billion (US$41.4 million) in the first nine months of 1994, a 21 percent increase from the same period of last year.
Textile firm
Texmaco Jaya, the manufacturer of finished textile products, will also split the par value of its shares and issue three bonus shares for every five old shares.
The company's extra-ordinary meeting held in Pekalongan also approved a proposal to pay share and cash dividends to existing shareholders.
The share dividend will be in the form of a new share for each five old shares while the cash dividend will amount to Rp 25 per share.
Texmaco Perkasa, a producer of textile-related machines, also plans to carry out a stock split and to issue bonus stocks as well as share and cash dividends.
The bonus shares will be in the form of three new shares for every 100 old shares and the share dividend in the form of 13 new shares for every 100 old shares, while the cash dividend will amount to Rp 16.25 per share.
The three companies will all halve the par values of their shares from Rp 1,000 at present to Rp 500 (US$23 cent), thereby doubling the number of their issued stocks. Consequently, this will also halve their respective share prices.
Sinivasan said that bonus shares will be issued from the companies' agioes (gains from the increase in share prices during their initial public offering), while the share dividends will be issued from retained earnings.(hen)