Texmaco's firms split stocks

Texmaco's firms split stocks

JAKARTA (JP): Three listed subsidiaries of the Texmaco Group, PT Polysindo Eka Perkasa, PT Texmaco Jaya and PT Texmaco Perkasa Engineering, have all split their shares to improve the liquidity of their trading on the domestic exchanges.

The stock split, which became effective on Tuesday, caused a sharp delusion in the prices of the shares, which respectively, dropped by around 50 percent.

Marimutu Sinivasan, the chairman of the Texmaco Group, said yesterday that the 50 percent drop in the prices of the three companies' shares was mainly caused by the share split.

"The price drop has nothing to do with fundamental factors of the companies," he said.

Polysindo, a manufacturer of polyester fiber, chips and yarns, cut the par value of its shares to Rp 500, from Rp 1,000 at present.

PT Texmaco Jaya, a manufacturer of textile products, and Texmaco Perkasa, a producer of textile-related machines, also halved the nominal value of their shares to Rp 500.

Sinivasan said that the split of the stocks was approved by shareholders in their recent meetings.(hen)