Jakarta, CNBC Indonesia – State-owned bank issuer PT Bank Rakyat Indonesia Tbk (BBRI) plans to repurchase (buyback) the company’s shares with a nominal value estimated at Rp 3 trillion.
According to information disclosure published in website Indonesia Stock Exchange (IDX), action buyback conducted through the IDX, either gradually or all at once, and completed no later than 18 months from the date of the 2022 Annual General Meeting of Shareholders (AGMS).
With this, the estimated period buyback BBRI will be held in the range of March 1, 2022 to August 31, 2023.
Previously, BBRI had set the AGMS date for March 1, 2022. Meanwhile, the date of the Register of Shareholders (DPS) who are entitled to attend the GMS is on February 4, 2022.
“Buyback implemented after obtaining approval from OJK [Otoritas Jasa Keuangan] taking into account the company’s liquidity and capital conditions and applicable regulations,” explained BBRI management in an information disclosure, quoted by CNBC Indonesia, Monday (24/1/2022).
According to the BBRI explanation, the action buyback believed not to affect BBRI’s financial condition. “The company’s working capital, up to now, is adequate to finance business activities,” said BBRI management.
BBRI added that assuming the company uses internal cash to buyback, then assets and equity are expected to decrease by a maximum of the estimated value of buyback and estimated cost buyback.
Implementation buyback predicted, explained BBRI management, will not significantly affect the company, both revenue and operational costs.
“Thus, implementation buyback it is believed that it will not have a material negative impact on the company’s business activities. In this case, working capital, cash flow and the Company’s Capital Adequacy Ratio (CAR) is sufficient for financing buyback along with the company’s business activities,” said BBRI management.
The plan, share the results buyback This will be used for the share ownership program of BBRI employees and/or Directors and Board of Commissioners.
According to BBRI’s explanation, the allocation of proceeds buyback The program is designed to be phased in starting in 2022.
For that, explained BBRI, the company prepares an estimated schedule and plan for the implementation of a sustainable program.
“Thus, during the process of transferring the shares resulting from the buyback, the company will temporarily suspend buyback through the IDX. In line with that, the Company will resume buyback after the transfer of some of the shares resulting from the buyback is carried out,” explained BBRI management.
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