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