Telkom to issue bonus shares

JAKARTA (JP): State-owned domestic telephone operator PT Telkom said on Wednesday that it would issue bonus shares to shareholders to raise its fully paid capital stock to 25 percent of the authorized capital.

Telkom's investor relations head Setiawan Sulistyono said in a statement that the company had to add issued and fully paid capital stock in the amount of Rp 333.33 billion (US$37.9 million) to comply with the 1995 limited liabilities law.

The minimum issued and fully paid capital stock is required to be 25 percent of the total authorized stock. Telkom's authorized capital is Rp 20 trillion, while the balance of the company's issued and fully paid capital stock as of the end of 1998 was Rp 4.67 trillion.

"To fulfill the required issued and fully paid capital stock, the company plans to issue bonus shares, which are taken from stock agio (additional paid-in capital)," Setiawan said.

The bonus shares will be distributed proportionately to all shareholders, and the scheme of the bonus shares will be determined at Telkom's annual shareholders meeting slated for April 16.

Setiawan said the issuance and distribution of bonus shares would not add to the value of total investors capital (total stockholder equity).

Telkom share price closed unchanged at Rp 2,800 on Wednesday. (rid)