Dian Kuswandini, The Jakarta Post, Jakarta | Fri, 06/13/2008 10:03 AM | Business
The world's second largest tin producer, PT Timah, will pay Rp 892.3 billion (US$94.98 million) or Rp 1,733 per share in dividends, a shareholders meeting approved Thursday.
President director Wachid Usman said the total dividends represented 50 percent of the company's 2007 net profit. It booked a net profit of Rp 1.8 trillion last year, an 857 percent increase from the Rp 208.1 billion profit of the previous year.
"Sixty-five percent of the approved dividends will be paid to the government as the company's main shareholder, while the rest will go to individual and institutional shareholders," Wachid said.
The remaining 50 percent of the company's net profit would be allocated to help finance the company's expansion, Wachid said.
Timah has already set aside Rp 1.4 trillion for that purpose, which includes setting up three new tin factories and expanding its coal and nickel businesses.
"The three new factories, one of them in Buton (Southeast Sulawesi), are worth around Rp 437.5 billion," corporate secretary Abrun Abubakar said.
Also approved during the meeting was the company's plan to split each of its existing shares into ten.
Under the plan which is due to take effect in July, Wachid said, the face value of the company's shares would drop from Rp 500 to Rp 50 each.
With more affordable shares, he said, "We're hoping to attract more domestic retail and small investors, improving the liquidity of our stock".
Timah shares rose by Rp 550 on Thursday, to Rp 34,550.
The world's second largest tin producer, PT Timah, will pay Rp 892.3 billion (US$94.98 million) or Rp 1,733 per share in dividends, a shareholders meeting approved Thursday.
President director Wachid Usman said the total dividends represented 50 percent of the company's 2007 net profit. It booked a net profit of Rp 1.8 trillion last year, an 857 percent increase from the Rp 208.1 billion profit of the previous year.
"Sixty-five percent of the approved dividends will be paid to the government as the company's main shareholder, while the rest will go to individual and institutional shareholders," Wachid said.
The remaining 50 percent of the company's net profit would be allocated to help finance the company's expansion, Wachid said.
Timah has already set aside Rp 1.4 trillion for that purpose, which includes setting up three new tin factories and expanding its coal and nickel businesses.
"The three new factories, one of them in Buton (Southeast Sulawesi), are worth around Rp 437.5 billion," corporate secretary Abrun Abubakar said.
Also approved during the meeting was the company's plan to split each of its existing shares into ten.
Under the plan which is due to take effect in July, Wachid said, the face value of the company's shares would drop from Rp 500 to Rp 50 each.
With more affordable shares, he said, "We're hoping to attract more domestic retail and small investors, improving the liquidity of our stock".
Timah shares rose by Rp 550 on Thursday, to Rp 34,550.
