BRI Will Buyback Shares Up To IDR 1.5 Trillion, Check The Estimated Schedule!

Bank BRI (Photo: Doc. Antara)

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) plans to buy back shares of IDR 1.5 trillion.

Buybacks are carried out through the IDX, either in stages or all at once, and are completed no later than 18 months after the date of the 2023 Annual General Meeting of Shareholders (AGMS) which approved the buyback.

"The estimated date of the 2023 AGMS is March 13, 2023 and the estimated buyback period is March 14, 2023 to September 14, 2024," BBRI's management wrote in an information disclosure, Friday, February 3.

The total value of all 2023 buybacks comes from the Company's internal cash in accordance with applicable regulations. The Estimated Buyback Value does not include costs (brokerage commissions and other costs) which are estimated to be up to 0.32 percent of the Estimated Buyback Value, if the 2023 Buyback is carried out in its entirety.

The implementation of the 2023 buyback and the total amount of treasury stock owned by the Company will not exceed 10 percent of the total issued capital in the Company in accordance with the applicable laws and regulations.

The buyback is carried out by the Company in the framework of the Share Ownership Program. The program in question is part of an effort to encourage engagement towards the sustainability of improving the Company's performance in the long term.

Shares from the 2023 buyback will be used for the Share Ownership Program. The allocation of shares from the 2023 buyback will be designed in stages, according to the estimated schedule and implementation plan for the Share Ownership Program.

Employee share ownership program is allocated in the form of employee stock allocation and/or employee stock option program. The share ownership program is given to employees with certain criteria such as achieving or exceeding performance targets, as well as other achievements that have an impact on increasing the value of the Company.

The allocation of employee share ownership program to be given is based on individual and Company performance achievements. The Board of Directors and Board of Commissioners share ownership program can be provided, among others, as annual incentives, long-term incentives and/or other incentives paid in the form of shares in accordance with applicable laws and regulations.

It is believed that the buyback will not have a material negative impact on the Company's business activities. In this case, the Company's working capital, cash flow and Capital Adequacy Ratio (CAR) are sufficient to finance buybacks along with the Company's business activities.

Previously, BBRI had carried out share buybacks in 2015 and 2020. The 2015 buyback and some shares were obtained in 2020 through a worker share ownership program.

Furthermore, in 2022, BBRI has carried out a share buyback which ended on January 23, 2023. Shares resulting from the buyback in 2022 have been partially transferred to the Board of Directors and Board of Commissioners share ownership program.