Stock split for Texmaco subsidiaries
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)