Correction from source: Bukit Asam allocates Rp2.04t to buy back shares

IDX-listed coal miner PT Bukit Asam Tbk plans to buy back up to 115.21 million shares, or 5% of the outstanding 2.3 billion issued shares in the market to increase capital structure efficiency and shareholders' returns.

Bukit Asam has allocated Rp2.04 trillion for the plan, which is derived from the company's retained earnings, said Corporate Secretary Achmad Sudarto. As of September 30, 2011, the company?s unappropriated retained earnings stood at Rp4.05 trillion.

?We are planning to buy back up to 5% of the 2.3 billion outstanding shares and have prepared IDR2.04 trillion, all sourced from retained earnings,? said Achmad, adding that the plan aimed at increasing earnings per share (EPS), return on asset (ROA)and return on equity (ROE).

?The current market condition is indeed fluctuating. However, this is not the main reason for the planned buyback, as our stock price is in fact on the raise. The main reason is because we want to raise EPS, ROA and ROE. Also, our cash balance is currently very strong.?

Based on the prospectus published Tuesday, EPS rose by 9.62% to Rp1,105 per share from Rp1,008 per share at the end of September. ROA also increased to 28% from 22% while ROE rose to 43% from 31%.

The stock to be bought back will be listed as treasury stock, which can be resold and withdrawn through capital reduction, equity conversion or for any financing needs. The company will hold an extraordinary shareholders meeting on December 22, 2011 to seek approval. If approved, this buyback will be realized within the next 18 months.

The current outstanding shares in the market is 34.96%. The government controls 65.02% stake in the company with the remaining 0.02% owned by the company's management and employees. (dadan)