After Earning IDR 439 Billion In Profit, Matahari Department Store Owned By Conglomerate Mochtar Riady Prepares IDR 500 Billion For Share Buyback

Matahari Department Store outlet, (Photo: Doc. Matahari Dept. Store)

JAKARTA - PT Matahari Department Store Tbk (LPPF) will carry out a corporate action by purchasing additional shares (buyback), or buyback of shares II 2021 as much as 262.614.878 shares or 10 percent of the company's paid-up and issued capital.

In an official statement from the LPPF, quoted Monday, November 8, the retail issuer from the Lippo Group owned by conglomerate Mochtar Riady has prepared a maximum of IDR 500 billion to carry out the action, including brokerage fees and other costs related to the 2021 share buyback II. Matahari Department Store will limit the maximum price of share repurchase II 2021 at IDR 4.700 per share.

"The buyback of shares II 2021 will be carried out either through the stock exchange or outside the stock exchange by taking into account the provisions of the applicable laws and regulations," wrote the management of the Matahari Dept Store.

The LPPF management added that the share buyback is no later than three months from the date of information disclosure on November 5, which is until February 4, 2022. The company hopes that the implementation of the 2021 share buyback will not affect the company's business activities and operations.

The reason, explained the management, the company stated that it has sufficient working capital to run its business activities. Management also believes that the company's market is currently undervalued and expects the 2021 share buyback will increase the company's market value.

"The company estimates that there will be no significant impact on the cost of the company's II 2021 share buyback and there will be no significant decrease in the company's revenue as a result of the implementation of the share buyback," he wrote.

Previously, from August 6, 2021, to November 5, 2021, Matahari Department Store has made a buyback I 2021 of a maximum of 393.922.000 shares or 15 percent of the company's paid-up and issued capital with a maximum price limit of IDR 3.050 per share or as stipulated in Financial Services Authority Regulation (POJK) 30/2017.

The costs to be incurred for the implementation of buyback I in 2021 are a maximum of IDR 450 billion, including intermediary fees and other costs related to the buyback of shares I in 2021.

For information, Matahari Department Store managed to turn losses into profits in the third quarter of 2021. This retailer earned a net profit of IDR 439 billion as of September 2021 compared to a net loss of IDR 617 billion in the same period the previous year.

In Matahari Dept Store's financial report published on the information disclosure page of the Indonesia Stock Exchange (IDX), quoted on Wednesday, November 3, the company posted gross sales of IDR 7.5 trillion in the third quarter of 2021, growing 28 percent compared to the same period in 2020. Matahari's net revenue was IDR 4.1 trillion in the first nine months of 2021, up 23 percent over 2020.