PTBA to buy back 2.4b shares

State-controlled PT Bukit Asam has allocated IDR 2.044 trillion to buy back up to 5% of the issued B-series stock, totaling about 2.3 billion shares, to give it more flexibility in managing its capital.

The plan is detailed in the company?s prospectus released Tuesday. The company said the fund would come from its retained earnings balance. As of September 30, the company?s unappropriated retained earnings stood at IDR 4.05 trillion.

The firm said the share buyback would enable it to be more flexible in making its capital structure more efficient, which would eventually lower overall capital costs and increase both earning per share (EPS) and return on equity (ROE).

Bukit Asam is scheduled to hold a shareholders? extraordinary meeting on December 22 to seek approval. If approved, the buyback would be carried out within the next 18 days.

The shares to be bought back, which represent about 5% stake in the coal producer, would be listed as treasury stocks. (dadan)