ABDA held rights issue in April

BI/exchange

16/2/2011

Irvin Avriano A. & Arief Novianto (04)

Bisnis Indonesia

JAKARTA: PT Asuransi Bina Dana Artha Tbk (ABDA) intends to held rights issue to increase the number of the amount of company's authorized capital to IDR126.63 billion in April.

"It looks like the action plan is rights issue, the time is set as described by pak Candra [ABDA President Director Candra Gunawan], the fastest is in April," said ABDA Marketing Director Freddy Wijaya told the press today (Wednesday).

However, he could not specify the definitive amount of fund targeted by the rights issue and should wait for the next official announcement.

The company's plan to increase authorized capital is by issuing B series new shares as much as 587.2 mio shares to 1.06 bio shares have nominal price IDR300. Meanwhile, A series shares will remain totaled 35.37 mio shares with nominal value IDR500.

The plan to increase number of shares will make the total number of shares of emitters which shares coded ABDA will be 1.1 bio shares.

ABDA President Director Candra Gunawan said the company targets its revenue to grow this year by 15% compared with last year, which admitted lower than growth in 2010. However, he said, he could not predict the amount of revenue the company booked throughout 2010 due to audit process in their financial statement.

He added the company intends to establish Islamic insurance unit this year, or at the latest on next year given the outlook for these business lines.

Currently, he said, the company has a primary focus on motor vehicle insurance which portion estimated to reach 60% of the total business. The company also has a health insurance business about 10%. and the remainder in property insurance, cargo, and surety bond.

Candra said the company has not plans to add a new investment allocation in stocks this year, considering the stock market condition which is still not convincing nowadays.

"We are still discussing with our investment managers, some of which Schroders [PT Schroder Investment Management Indonesia] and BNP Paribas [PT BNP Paribas Investment Partners]."