Inco to be delisted from SSX this month
Thursday, May 3 2001 - 04:30 AM WIB
The management of the Surabaya Stock Exchange (SSX) has approved the proposal from nickel mining firm PT International Nickel Indonesia Tbk (Inco) to delist its shares from the exchange starting May 16, Suara Karya daily reported on Thursday (May 3).
In his letter to the SSX management, Rumengan contended that Inco had two reasons to demand the delisting of its shares from the SSX. First, trading of Inco shares on the SSX had been declining sharply in the past few years.
Last year, for instance, no single transaction of Inco shares was recorded on the SSX, while in 1999, only 8,000 Inco shares were traded.
The other main reason was the requirement from the SSX for all companies listed on the exchange to list all of their shares. Inco contended that this requirement would end up with increasing costs of listing per annum.
Because of those considerations, Inco proposed to its shareholders through a shareholders meeting on April 5 to delist Inco shares on the SSX, and the shareholders gave their green light.
The SSX then approved Inco's proposal for share delisting but warned Inco that the latter would have to go through all normal processes whenever it wants to re-list its shares on the SSX. In addition, Inco must assume all responsibilities if there is any legal actions following the delisting of Inco shares.
Inco does not perform well financially this year. Inco recorded a net profit of US$8.9 million in the first quarter of this year, or declining 4 percent per share or 7 U.S. cents per share. Last year, Inco recorded a net profit of US$81.1 million.
The drop in the net profit was mainly resulted from the declining nickel prices in the world markets as Inco's nickel matte output increased to 15,200 tons in the first quarter of this year from 13,600 tons in the same period of last year. (*)