JAKARTA. PT Provident Investasi Bersama Tbk (PALM), a holding of investment companies under Provident Capital and Saratoga Group, will hold a buyback with a budget of IDR 80.61 billion.

With said budget, the number of shares to be repurchased by PALM is 162 million shares, which are equal to 1.03% of total issued and paid-up capital of the company.

The buyback will take place gradually, no later than 12 months after securing approval from Extraordinary General Meeting of Shareholders. The meeting is scheduled to be held on June 26, 2024, in Jakarta.

The management of PALM mentioned that this corporate action is said to increase the value for shareholders, as well as the company’s stock performance. “Thus granting immense flexibility for the company in managing its capital to attain an efficient capital structure,” said the management in the official stement.

The buyback of PALM will be done through trading session in Indonesia Stock Exchange (IDX). For the buyback, the company has assigned PT Indo Premier Sekuritas as the broker.

The fund that will be used for this upcoming buyback of PALM originates from internal cash. This decision is said not to affect the company’s revenue and profit performance in the future, as it is equipped with adequate amount of internal cash. (KR/ZH)