UT gives bonus shares

JAKARTA (JP): The shareholders of PT United Tractors (UT) approved on Monday the management's proposal to issue nine new bonus shares for every five existing shares.

"The issuance of the bonus shares is a result of the revaluation of the company's fixed assets conducted in late 1997," the company said in a statement.

The company said share prices would decrease proportionally with the increasing volume of its shares following the issuance of bonus shares.

However, it will not affect the percentage of ownership of the existing shareholders in the company, it added.

The company also said it might hold another extraordinary shareholders meeting in a few months to approve the proposed stock split and an increase in paid-up capital.

The company's management earlier proposed to split the par value of its shares from Rp 1,000 (13 US cents) to Rp 250.

UT is 50 percent owned by diversified holding company PT Astra International, 10.86 by Norbax Inc. and 39.14 by the public. (udi)