Kalbe Farma, Pharmaceutical Company Owned By Conglomerate Boenjamin Setiawan Increases Share Buyback Allocation To IDR 750 Billion

JAKARTA - The pharmaceutical company owned by conglomerate Boenjamin Setiawan, PT Kalbe Farma Tbk (KLBF) has increased its share buyback allocation to IDR 750 billion from the previous IDR 500 billion. The corporate action carried out by the company was carried out on May 20-August 19, 2022.

"The estimated nominal value of the shares to be repurchased will increase from a maximum of IDR 500 billion to a maximum of IDR 750 billion. Meanwhile, the number of shares will increase from the estimated maximum number of shares of 312.5 million shares to a maximum of 468.75 million shares," said Kalbe's President Director. Farma Vidjongtius in a written statement, quoted Wednesday, August 3.

Vidjongtius explained that the purchase of shares will be carried out at a maximum price of IDR 1.700 per share. The amount has not changed from the original plan.

"The share repurchase is carried out using the company's internal cash. The impact of the decline in interest income on the company's earnings per share is estimated at 0.5 percent," said Vidjongtius.

Furthermore, said Vidjongtius, the repurchase of shares is carried out through transactions on the Indonesia Stock Exchange. For this reason, the company will use the services of a securities broker.

"Share repurchase is expected to stabilize prices in volatile market conditions, and provide investors with confidence in the fundamental value of the company's shares," he said.

This buyback action also provides flexibility for the company in managing long-term capital, where treasury shares can be sold in the future at an optimal value if KLBF requires additional capital.