Telaga's rights shares

JAKARTA (JP): The Surabaya-based PT Telaga Mas said it expected to raise Rp 68.5 billion (US$290.2 million) from the issuance of its shares later this year.

An executive of the firm Mohammad Armaini said yesterday the rights shares would be sold at Rp 1,000 each and every two old shares would entitle shareholders to buy five new ones.

He said Rp 40.5 billion or 59 percent of funds from the rights issues would be used to acquire electronic distributor PT Artha Graha Wahana, Rp 15 billion or 22 percent of the proceeds would be used to pay its debts and Rp 13 billion or 19 percent would be used to increase the company's capital.

Armaini said with the acquisition of PT Artha Graha Wahana shares, PT Telaga Mas would expect to see a sales turnover of Rp 616 billion this year. (09)