This Mining Company Owned By Conglomerate Arifin Panigoro Wants To Buyback Shares Worth IDR 130.5 Billion

Arifin Panigoro conglomerate. (Photo: Doc. Antara)

JAKARTA - The oil and gas mining company, PT Medco Energi Internasional Tbk will take corporate action. The issuer with the stock code MEDC plans to repurchase or buy back shares of a maximum of IDR 130.5 billion or the equivalent of US$ 9 million.

The buyback funds come from internal cash balances. The funds include transaction costs, brokerage fees, and other costs related to the company's share repurchase transaction.

In the prospectus published by Medco Energi on the information disclosure page of the Indonesia Stock Exchange (IDX), quoted on Friday, July 9, the repurchase of shares in the company owned by conglomerate Arifin Panigoro is equivalent to 0.8 percent of the total paid-up and issued capital.

"The estimated number of shares to be repurchased is 190,000,000 shares or 0.8 percent of the company's issued and paid-up capital, so it will not exceed 10 percent of the shares, including the company's current treasury shares", explained Medco Energi's management.

The buyback period itself will be carried out no later than 18 months since it was approved by the General Meeting of Shareholders (GMS) which will be held on 16 August. This means, if approved, Medco can complete the share buyback until February 16, 2023.

Medco has appointed PT BRI Danareksa Sekuritas to buy back the company's shares through trading on the IDX during the buyback period.

For information only, Medco Energi reported a loss attributable to the parent entity of US$ 188.97 million or equivalent to Rp2.74 trillion (exchange rate of 14,500) in 2020. This figure jumped to 387 percent from the previous loss in 2019 of US$ 38.76 million or equivalent to IDR 562.09 billion.

This performance improved in the first quarter of 2021, where the company managed to obtain a net profit of US$ 5.12 million or around IDR 74.24 billion. In the same period the previous year, Medco lost US$ 19.97 million or around IDR 289.56 billion.