JAKARTA. PT Bank Raya Indonesia Tbk (AGRO) schedules a share buyback with total budget set to IDR 20 billion. 

In order to proceed with this corporate action, AGRO will ask for approval from Extraordinary General Meeting of Shareholders, which is said to take place on August 21, 2024. 

The number of shares that will be repurchases has not been publicly disclosed, but is projected to remain below 10% of its issued and paid-up capital of the company. In addition, the free float rate is also set not to arrive less than 7.5%.

"The share buyback is driven by the effort to increase engagement and ownership of the employees towards the company," said AGRO in the official statement.

However, the fund source used by AGRO for this buyback will be taken out of its internal cash. "The buyback is said not to impose negative and material effect on the company's business activities. In regard to this, working capital, cash flow, and capital adequacy ratio (CAR)of the company are adequate to fund the buyback alongside business activities," claimed the management of AGRO.

Share buyback of AGRO will take place within and outside the stock exchange. For the corporate action, the company will assign one stock exchange member as the broker. (KR/ZH)