Matahari Department Store Prepares IDR 500 Billion For Share Buyback

Illustration. (Photo: Doc. Antara)

JAKARTA - Retailer from Lippo Group owned by conglomerate Mochtar Riady PT Matahari Department Store Tbk (LPPF) will buy back or buyback shares of up to 10 percent of the company's paid-up and issued capital.

In the information disclosure on the Indonesia Stock Exchange (IDX) website, quoted on Monday 7 February, the maximum number of shares is 262,614,878 LPPF shares. The share buyback is carried out at the latest until May 3, 2022.

PT Matahari Department Store Tbk has prepared a share buyback fund of IDR 500 billion. The stock buyback fund includes brokerage fees and other costs.

"The company will limit the maximum share repurchase price in 2022 to IDR 4,700 per share," the company wrote.

The buyback of shares in 2022 will be carried out either through the stock exchange or outside the stock exchange with due observance of the provisions of the applicable laws and regulations.

The Company estimates that there will be no significant impact on the cost of the company's 2022 share buyback and no significant decrease in the company's revenue as a result of the 2022 share buyback implementation.

"The implementation of the 2022 share buyback is expected not to affect the company's business activities and operations because the company already has sufficient working capital to carry out the company's business activities," the company wrote.

Meanwhile, PT Matahari Department Store Tbk believes the company's market is currently undervalued and hopes that the 2022 share repurchase will increase the company's market value.