ITMG plans share buy back
Friday, February 26 2016 - 04:48 AM WIB
IDX-listed coal mining company PT Indo Tambangraya Megah Tbk (ITMG) plans to buy back its shares, which have tumbled amid the current drop in coal price.
The company said in a statement Thursday that it has allocated Rp 1.36 trillion to buy back about 112.99 million shares, or about 10 percent of its issued shares in a bid to help restore investors confidence in the company.
ITMG said that the share price has tumbled by 65.4 percent from Rp 15,900 per share on January 1, 2015 to Rp 5,500 on February 24, 2016 due to the lingering downturn in the coal industry.
ITMG said that the current share price does not reflect the company?s fundamentals. The company added it has appointed PT Danareksa Securities to carry out the share buy-back program.
Editing by Reiner Simanjuntak