The proceeds of the rights issue will be used to finance the company`s business expansion, MASA President Director Pieter Tanuri said in a press statement.
He said nearly 44 percent of the funds would be used to buy machines/production equipment, 26 percent to develop timber estate including rubber process industry and 30 percent to strengthen working capital.
Now was the proper time for the company to make a rights issue particularly after MASA shares had been put on the list of blue chips according to the Morgan Stanley Composite Index (MSCI) for Small Caps since November 15, 2011, he said.
Every old shareholder who is put on the company`s list of shareholders and holds two shares as of 04.00 p.m. on December 29, 2011 is entitled to receive preemptive rights to buy one new share for Rp500.
MASA is a motor vehicle tire producer with an annual production capacity of 7 million units of car tires and 4.7 million units of motorcycle tire. (*)
Editor: Kunto Wibisono
Copyright © ANTARA 2011
