JAKARTA – PT Medco Energi Internasional Tbk (MEDC) has announced plans to buy back 407 million shares, equivalent to 1.62% of its outstanding shares, with a maximum fund allocation of IDR 820 billion.

This corporate action will take place over three months, starting from Tuesday (25/3).

Siendy K. Wisandana, Corporate Secretary of MEDC, stated that the buyback aims to increase Return on Equity (ROE) and provide flexibility in capital management. Additionally, she mentioned that the buyback allows the company to efficiently distribute excess cash to shareholders.

Siendy further assured that the buyback would not materially impact the company’s revenue, as MEDC has ample working capital and cash flow.

MEDC will utilise internal funds for the buyback. The company has appointed PT BRI Danareksa Sekuritas as the intermediary to carry out the repurchase through the Indonesia Stock Exchange (IDX).

“The buyback will only be conducted if it is deemed beneficial for the company and its shareholders,” Siendy said in an official statement, quoted on Wednesday (26/3).

As of February 28, 2025, Diamond Bridge Pte. Ltd. holds 21.46% of MEDC shares, followed by PT Medco Daya Abadi Lestari with 51.50%, and the public with 26.45%.

As of 9.15 AM WIB on Wednesday (25/3), MEDC’s share price rose 3.06% to IDR 1,010. However, on an annual basis, the company’s shares have fallen by 29.02%, or 415 points. (EF/KR/ZH)