JAKARTA. PT Adaro Energy Indonesia Tbk (ADRO) will conduct another shares buyback with an allocated budget of IDR 4 trillion.

The management of ADRO claimed that the number of shares that will be repurchased will not exceed 20% of its total issued and paid-up capital. Nevertheless, it will still comply with the rules set by the Financial Services Authority (OJK), which states that the minimum remaining outstanding shares is 7.5% of total share.

The buyback will start on February 15, 2023, and will last for three months, ending on May 15, 2023. “Should the allocated fund run out, and/or the number of shares that is planned to be repurchased has been fulfilled, the company will issue an information disclosure regarding the early termination of buyback period,” the management explained thoroughly.

According to IDNFinancials, ADRO had initiated its previous buyback in 2021. It was extended four times and officially terminated on December 15, 2022. Throughout the buyback period, the company had repurchased 1 billion units of shares.

“The company is confident that the buyback will not negatively affect the performance and revenue of the company, because the current profit and cash flow of the company are still highly adequate,” the management of ADRO added.

For the record, ADRO has assigned a security company to arrange this buyback. The buyback will take place through transactions in Indonesia Stock Exchange (IDX), specifically in the regular market. (KR/ZH)