JAKARTA – PT Garudafood Putra Putri Jaya Tbk (GOOD), a company in the consumer goods sector, announced plans for a share buyback with a maximum fund allocation of IDR 50 billion.

The management of GOOD stated that the number of shares to be repurchased is estimated to reach 130.56 million shares or 0.35% of the total outstanding shares.

GOOD will utilise its internal cash for this buyback action. "The share buyback will reduce the company’s internal cash by a maximum of IDR 50 billion," they said in a disclosure to Indonesia Stock Exchange (IDX) on Thursday (13/3).

The buyback process will be carried out gradually within a maximum period of 12 months following approval from the Extraordinary General Meeting of Shareholders (EGMS), which is scheduled for April 24, 2025.

GOOD’s management disclosed that this corporate action aims to maintain share price stability, especially since the current share price does not reflect the company’s true value or performance.

"This share buyback action will not significantly impact the company’s revenue," they added.

The shares repurchased by GOOD will be held as treasury shares for a maximum period of three years from the date of repurchase. However, the company retains the option to re-sell the shares, in accordance with Article 21 of POJK 29/2023.

As of Friday’s (14/3) trading, by 11.28 AM WIB, GOOD shares had fallen 1.02% to IDR 388 per share. Over the past week, GOOD shares have risen slightly by 0.53%. (DK/KR/ZH)