Merdeka Copper Gold Owned By Edwin Soeryadjaya Conglomerate And Sandiaga Uno Will Buy Back IDR 530 Billion Of Its Shares

Conglomerate Edwin Soeryadjaya together with Sandiaga Uno. (Photo: Instagram @sandiuno)

JAKARTA - PT Merdeka Copper Gold Tbk (MDKA) plans to carry out share buybacks. The fund allocation for this action is said to be a maximum of IDR 530 billion and will be carried out in stages.

Quoted from the disclosure of information on the Indonesia Stock Exchange website, Monday, April 19, the management of the company whose shares are owned by  Edwin Soeryadjaya and Sandiaga Uno conglomerates announced that they will buy back as much as 1 percent of all issued and fully paid capital. The company made a maximum purchase of 229.003.658 shares.

The maximum fund allocation is IDR 530 billion and will be carried out in stages within a maximum of 18 months from the approval of the buyback by the Extraordinary General Meeting of Shareholders (EGMS) on May 25, 2021.

The offering price for the share buyback will refer to article 10 and Article 11 POJK 30/2017. MDKA will appoint PT Indo Premier Sekuritas to carry out share buybacks through the stock exchange.

MDKA is considering buying back one of which is to provide flexibility that allows the company to maintain stock price stability if the price does not reflect value or performance.

In addition, buybacks are also carried out in the context of implementing a long-term incentive (LTI) program for employees and/or directors and/or board of commissioners of Merdeka Copper and/or its subsidiaries. MDKA estimates that the implementation of the share buyback will not cause a downward impact on income.

"With no impact on the decline in income as a result of the share buyback, there will be no change in the company's profit performance", explained MDKA management.