Medco plans to buy back shares
Monday, May 28 2001 - 05:30 AM WIB
Local oil and gas company PT Medco Energi Internasional Tbk will buy back up to 10 percent of its shares from the market in a bid to improve the company's stock price performance, Detikcom Internet news service reported on Monday.
In a statement to its shareholders on Monday, the company said it had allocated a total fund of Rp 264 billion (US$=Rp 11,465) for the buyback, and would conduct the buyback when the stock price stayed at the same level or lower than that in the previous trading session. But it did not say how much would be the ceiling.
The company said that the shares from the buyback would be kept as treasury stocks.
The buyback plan would result in the reduction of the company's current assets by Rp 8.448 billion from potential interest income and other income if the funds are placed in time deposits or other investment vehicles.
Nevertheless, the company assured its shareholders that the buyback program would not affect the company's ability to invest as it had been pursued by considering the company's investment ability for future growth.
The company would seek the approval from its shareholders for the buyback program at the company's extraordinary shareholders meeting slated to be held on June 25, 2001. (*)