JAKARTA. PT Medco Energi Internasional Tbk (MEDC) sets up fresh funds of USD 8 million or equal to approximately IDR 120 billion to conduct buyback.

“The cost to carry out this shares repurchase (buyback) will be sourced out of the company’s internal cash,” the management of MEDC mentioned in the official statement.

The number of shares that will be repurchased by MEDC is expected to reach 100 million shares, equal to 0.398% of its issued and paid-up capital.

The management of MEDC claimed that this buyback is intended to increase the return on equity (ROE) of the company. This corporate action is said to be able to grant greater flexibility for the company to manage its capital structure and maximise the returns for its investors.

MEDC has assigned PT BRI Danareksa Sekuritas to conduct the buyback. The repurchase will be carried out through trading sessions on Indonesia Stock Exchange (IDX).

The repurchased shares will be distributed to its employees and management. MEDC will also ask for approval regarding this plan during the General Shareholders Meeting on May 31, 2023. (KR/ZH)