Telkom seeks approval for stock split plan

Telkom seeks approval for stock split plan

Publicly listed telecommunications company PT Telkom said on
Tuesday it would ask its shareholders to approve a stock split at
its July 30 meeting.

Company spokesman Husni Amani said Telkom planned a 2-for-1
stock split in a bid to boost the liquidity of its shares in the
stock market.

"The stock split will make the price of the shares lower and
affordable for retail investors. In turn this will make the
shares more liquid," he said.

A 2-for-1 stock split would double the number of authorized
shares and cut the price of the shares by half.

Telkom is the largest counter on the Jakarta Stock Exchange.

The company has said it would also seek shareholder approval
to use part of its 2003 net profit for dividend payments.

Telkom will announce its audited 2003 financial results on
Wednesday. The Jakarta Stock Exchange has threatened to suspend
Telkom shares if the company fails to submit the audited report
by Wednesday. The company suffered delays in having its audited
2003 financial report completed as it took almost a year for the
company to settle its 2002 financial report to meet the
requirements of the U.S. Securities and Exchange Commission.

The government owns a 51.19 percent stake in Telkom.

Shares in Telkom fell by Rp 50, or 0.7 percent to Rp 7,300 on
Tuesday after its American Depository Receipts fell 1.5 percent
to US$15.31 in New York on Monday. -- JP