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)