Sucaco's rights shares

Sucaco's rights shares

JAKARTA (JP): Shareholders of PT Supreme Cable Manufacturing
Corporation (Sucaco) approved yesterday the company's plan to
issue 22.84 million rights shares at Rp 3000 (US$1.31) each,
Sucaco president Elly Soepono said.

Of the Rp 68.5 billion (US$29.9 million) to be generated from
the rights share issuance, Rp 48 billion will be used to purchase
new machines, Rp 13 billion to increase working capital and Rp
6.8 billion to repay bank loans.

Holders of two existing shares will, on Nov. 20, be eligible
to buy one rights share.

At a press conference following the shareholders' meeting,
Elly said that the rights issue is intended to strengthen capital
structure in line with the company's plan to double the
production capacity of electric cables for medium voltage and
telephone cables next year.

According to Sucaco, PT Telkom, the state-owned
telecommunications operator, annually buys 25 percent of its
telephone cables and the state-owned electricity company PT PLN
buys 50 percent of its electric cables. (10)