Medco Energi, Oil And Gas Company Owned By Arifin Panigoro Conglomerate Distributes Rp130.5 Billion For Share Buyback

Illustration. (Photo: Doc. Medco Energi)

JAKARTA - PT Medco Energi Internasional Tbk (MEDC) plans to take a corporate action, namely to buy back shares. In this action, this oil and gas mining company poured Rp130.5 billion or the equivalent of 9 million US dollars (exchange rate of Rp. 14,500 per US dollar).

In Medco's statement on the information disclosure page of the Indonesia Stock Exchange (IDX), quoted on Thursday, August 26, the funds include transaction fees, brokerage fees, and other costs related to share repurchase transactions.

The estimated number of shares to be repurchased by MEDC is 190 million shares or 0.8 percent of the issued and paid-up capital. The number of shares repurchased will not exceed 10 percent of MEDC's current shares (including treasury shares).

The management of the company owned by the conglomerate Arifin Panigoro said this buyback program was part of the continuation of the current employee and management share ownership program (ESOP and MSOP).

In accordance with the provisions of the applicable capital market regulations, the Company may transfer the shares acquired back from the share repurchase for the implementation of employee and management share ownership programs.

The buyback will take place for a maximum period of 18 months from August 26, 2021 to February 26, 2023. The buyback will be carried out at a price lower or equal to the transaction price that occurred previously in accordance with the provisions as stipulated in POJK No. 30.

Medco Energi has appointed BRIDanareksa Sekuritas to buy back the company's shares.

However, MEDC may terminate the repurchase of shares at any time prior to the expiration of the 18 month period if any of the following conditions exist. First, the number of shares to be repurchased has reached 0.8 percent of MEDC's shares.

Second, the funds issued by MEDC have reached Rp. 130.50 billion. Third, termination is deemed necessary by Medco's management. In that case, MEDC will announce to the public the termination of the share buyback.

Medco Energi's management estimates that there will be no effect on the decline in revenue from the implementation of this share buyback. This is because a new buyback will be carried out in the future and the buyback price is based on the price of transactions that occurred previously.