Medco to buy back shares worth Rp 86 b
Monday, June 26 2000 - 03:15 AM WIB
PT Medco Energi International Tbk plans to buy back its shares worth Rp 86 billion (about US$10 million) in the next 12 months to boost its share prices to over Rp 2,000 per share, form about Rp 1,050 now.
Medco's corporate secretary and finance director Sugiharto revealed the plan at the company's extraordinary shareholders meeting in Jakarta on Friday.
"Shareholders gave the management the authority to stabilize share prices toward a fair level," he told Bisnis Saturday night.
Sugiharto said that such a corporate action would only be executed when Medco's share prices fell below Rp 2,000.
He noted that the company share prices, staying at 1,050 on Friday's close, was already distorted and did not represent the company's fundamentals. He noted that since the company floated its shares for the first time, the company's fundamentals continued to improve. It can be seen from the company's improving production level by more than 50 percent.
Medco, Sugiharto said, would inform on Monday the Capital Market Supervisory Agency and the management of the Jakarta Stock Exchange about its plan to buy back a portion of its shares to boost share prices.
Besides the buyback, Medco's shareholders also approved the company's plan to execute its stock option for its employees. (*)