Medco Energy has yet to carry out buy-back plan

Publicly listed Medco Energy International has yet to carry out its plan to buy back Rp 86 billion (1US$=Rp 8500) worth of its shares from the stock exchange in a bid to prop up the sagging share prices, Bisnis Indonesia reported on Monday.

The company's investors relations manager Medco Thendry Suprianto said in Jakarta on Saturday that the management had received an approval from the shareholders during an annual shareholders meeting in June to carry out the buy-back program in 12 months.

"But so far the buy-back plan has not yet been carried out," he said, adding that the company could enter the stock market any time to carry out the buy back program because a delay in the buy-back program would not breach the capital market regulation.

During the annual meeting, the shareholders approved the management proposal to allocate about Rp 86 billion to buy back the company's shares at a maximum price level of Rp 2,000 per share.

Thendry said that the management had yet to decide whether the shares which would be purchased under the buy-back program would be used to support the employee stock option plan. "The buy-back has no relations with the stock option plan because such a plan could be also made through the issuance of new shares," he added. (*)