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PTBA prepares Rp 650b for buybacks
State-run coal producer PT Bukit Asam Tbk (PTBA) says it has prepared Rp 650 billion (US$46
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tate-run coal producer PT Bukit Asam Tbk (PTBA) says it has prepared Rp 650 billion (US$46.15 million) to carry out a stock buyback program in stages, from Sept. 2 to Dec. 1.
PTBA corporate secretary Joko Pramono said in Jakarta on Tuesday that the huge amount of funds would be used to buy 101,333,363 B-series shares, or 4.4 percent of the total capital placed.
Joko said the corporate action was conducted following declines in the Jakarta Composite Index (JCI) and the Indonesian Stock Market (IDX), which stood at 4,446.20 points on Aug. 28, down by 17.63 percent from 5,396.85 on March 30.
'The PTBA stock price stood at Rp 5,950 per share at the IDX closing trading session on Aug. 28, or down by 51.92 percent from Rp 12,375 at the beginning of this year. The stock price decline did not reflect the company's work performance,' he said as quoted by Antara.
Joko explained that one of the purposes of the company's corporate action was to give adequate facilities to achieve an efficient capital structure and to enable the company to reduce its overall capital costs and increase its 'earning per share' and 'return on equity' in a sustainable way.
Joko said the PTBA's buyback program was aimed at giving the company greater flexibility in managing its long-term capital.
'The PTBA will not carry out stock buyback transactions if they are negative in nature toward the company's liquidity and capital and/or its status as a publicly listed company,' he said. (ebf)
