Telkom to issue bonus shares for investors

Telkom to issue bonus shares for investors

BANDUNG, West Java (JP): PT Telekomunikasi Indonesia (Telkom)
will soon distribute about three million shares to Indonesian
individual and cooperative shareholders as a bonus if they hold
its shares for a year.

The company announced yesterday the bonus shares would be
distributed from the government's holding in the
telecommunications company, which floated its shares on local and
overseas markets in November last year.

T. Hedi Safina, a Telkom executive, said the bonus shares
would be distributed through assigned post offices.

"Telkom will cooperate with PT Pos Indonesia, the state-owned
postal company, in distributing the bonus shares to ensure that
the distribution of the bonus shares runs smoothly," he said.

Telkom, which is listed on the New York Stock Exchange, London
Stock Exchange and the Jakarta and Surabaya stock exchanges,
offered discounts and incentive shares to local individual
investors and cooperatives during its initial public offering
(IPO) in October last year.

The individual investors who bought at least 500 shares during
the IPO period should receive 50 bonus shares, and cooperatives
which bought at least 5,000 shares should be given 500 bonus
shares as a reward for not selling their Telkom shares within a
year.

Hedi said the investors, who met the requirement, could
collect their bonus shares at designated post offices.

"The investors must bring their ID cards and Telkom share
ownership documents with them when collecting their bonus
shares," he said.

Hedi said 0.04 percent of the government's 9.33 billion shares
in the telecommunication company would be distributed for the
bonus issue.

The government owns an 82.14 percent stake in the company.

The price of Telkom shares, around Rp 2,800 (US$1.18) during
the IPO period, reached Rp 3,500 early this week. (17/hen)