XL Axiata Announces Rp500 Billion Shares Buyback Program

Illustration. (Photo: XL Axiata)

JAKARTA - Telecommunication issuer, PT XL Axiata Tbk. (XL Axiata) announced a share buyback program worth up to IDR 500 billion on the stock market for a period of three months from April 7, 2020 to July 6, 2020.

The management of this issuer coded EXCL believes that its current share price, which is nearing its all-time low, does not reflect business fundamentals that remain strong. This share buyback program aims to send positive signals to the market and instill confidence in XL Axiata's long-term prospects.

President Director & CEO of XL Axiata, Dian Siswarini said, the current market sentiment has been very weak due to concerns around COVID-19. This has had an impact on the share prices of all companies, and even XL's share price is not immune from this sentiment, which is currently trading at prices that are close to all-time lows.

"We believe that the current share price level does not reflect our business fundamentals, and that's why we initiated this buyback program," said Dian in a statement received by VOI, Tuesday, April 7.

Dian also added that this buyback program also supports government initiatives and is in accordance with the provisions in the Financial Services Authority (OJK) Circular No. 3 / SEOJK.04 / 2020 dated 9 March 2020. That allows all issuers or public companies to carry out share repurchases without obtaining shareholder approval in the GMS to support the stock market stabilization process in conditions that fluctuate significantly.

"We can do this buyback because we have a strong financial position, with a strengthened balance sheet," he explained.

XL Axiata supports the government's initiative with this Rp500 billion share buyback program and XL Axiata has no plans to cancel the shares to be purchased through a buyback. The objective of maintaining these shares as treasury shares is XL Axiata's long-term strategy.