Adaro Energy Owned By Conglomerate Garibaldi 'Boy' Thohir Will Buyback Shares Worth Rp4 Trillion

Illustration. (Photo: Unsplash)

JAKARTA - PT Adaro Energy Tbk (ADRO) plans to buy back the company's shares (buyback) as much as Rp4 trillion. This coal mining company will use funds from internal cash to buy back these shares.

In the disclosure of information delivered by Adaro's management, quoted on Tuesday, September 28, the implementation of the share buyback will not exceed 20 percent of the paid-up capital and still maintain the number of shares outstanding in the public (free float) of 7.5 percent based on the Financial Services Authority Regulation (POJK). No. 2/2013 and OJK Circular (SEOJK) No. 3/2020.

"The buyback of the company's shares will be carried out in stages over a period of 3 months starting from the date of this information disclosure, namely September 27, 2021, until December 26, 2021," said Adaro's management.

Adaro's management said that the company's share repurchase implementation will not have a negative impact on the company's performance and revenue because the company's current retained earnings and cash flow are sufficient to fund the buyback implementation.

"If the funds allocated for the repurchase of the company's shares have been exhausted and/or the number of shares to be repurchased has been fulfilled, the company will disclose information related to the termination of the share repurchase," the management wrote.

Meanwhile, the price for the implementation of the buyback has not been determined, but it will be carried out at a price deemed in accordance with applicable regulations. The company, which is led by conglomerate Garibaldi 'Boy' Thohir, emphasized that the share buyback will not have a negative impact on the company's business activities and growth in the future.

However, the impact of this buyback will reduce the total assets and equity of the company by as much as Rp4 trillion. The Company hopes that the repurchase of the company's shares will provide a good rate of return for shareholders and increase investor confidence so that the company's share price can reflect the actual condition of the company's fundamentals.