After Being Destroyed By The Pandemic, Ramayana Now Prepares IDR 200 Billion For Share Buyback

Gerai Ramayana. (Photo: Wikimedia Commons)

JAKARTA - The retail company, PT Ramayana Lestari Sentosa Tbk (RALS) will carry out a corporate action, namely the buyback of shares of a maximum of five percent of the company's paid-in capital. The maximum share buyback is 360 million shares.

In an information disclosure on the Indonesia Stock Exchange (IDX) website, quoted on Friday, July 22, PT Ramayana Lestari Sentosa Tbk has prepared IDR 200 billion in funds including brokerage fees and other costs for share buybacks.

The share buyback will be carried out after obtaining shareholder approval at the Extraordinary General Meeting of Shareholders (EGMS) on August 29, 2022. The share buyback will be carried out no later than 18 months from the date of the EGMS approval.

The company carries out the buyback under the provisions of POJK No. 30, among others, the plan is to do it through one stock exchange member. In addition, the bid price for the implementation of the plan must be lower and equal to the price of the previous transaction.

PT Ramayana Lestari Sentosa Tbk is considering share buybacks as the company experiences profits for the 2021 financial year and the company's directors have managed to maintain sufficient liquidity so that the company intends to increase shareholder value by returning excess cash flow to shareholders through buybacks.

"The approval of the plan will give the company greater flexibility in managing capital to achieve a more efficient capital structure," explained Ramayana's management.

The Company believes that the implementation of the share buyback will not affect the financing of the company's business activities considering that it has sufficient and adequate working capital and cash flow to carry out the share buyback.