Astra Otoparts shares hikes after 1:5 stock split announced

20/4/2011

Irvin Avriano A.

Astra Otoparts shares hikes after 1:5 stock split announced

JAKARTA: PT Astra Otoparts Tbk shares, an Astra Group spareparts listed company, strenghthening IDR300 or 1.29% to IDR16,100 level this morning at 10.05 AM, after announce 1:5 ratio stock split plan late afternoon, yesterday.

The AUTO coded share price formed IDR12.42 trillion and price to earnings ratio (PER) 10.87 times. Formerly, there are rumors by market participants that the company will held a stock split, but with 1:3 ratio.

Robby Sani, Astra Otoparts Director, said in the IDX information disclosure the stock split could make their shares more liquid transacted in the stock market. Many spareparts listed companies shares is not liquid enough, related to few market capitalization and the limited amount of floated shares in the public.

Yesterday, the one of many PT Astra International Tbk subsidiaries, also have announce in IDX that they will formed a joint venture subsidiary, PT Astra Visteon Indonesia, with Visteon Corporation that known as VIHI LCC, a global market spareparts player which shares has been listed on New York Stock Exchange.

The 50:50 joint venture company will headquartered in Citeureup, Bogor, and predicted will start its production on 1stQ/2012 to supply electronic spareparts instruments to automotive and motorcycles manufacturer companies in Indonesia.

After forming the joint venture subsidiary in Indonesia, Visteon is more widening their business area in Asia, related to already penetrated Thailand and India motorcycles spareparts market.