Jakarta, CNBC Indonesia – Lippo Group retail issuer, PT Matahari Department Store Tbk (LPPF) plans to repurchase additional shares (buyback) that have been issued by the company and are listed on the Indonesia Stock Exchange (IDX) or called Share Buyback II 2021.
In this second buyback action, LPPF management stated that the buyback was carried out in accordance with the provisions stipulated in a number of regulations, Law no. 40 of 2007 concerning Limited Liability Companies, Law no. 8 of 1995 concerning the Capital Market, SEOJK No. 3/SEOJK.04/2020 concerning Other Conditions as Market Conditions that Fluctuate Significantly, and POJK No. 2/POJK.04/2013 concerning Buyback of Issued Shares.
The buyback of shares II will be carried out no later than 3 months from the date of this information disclosure, which is no later than February 4, 2022.
“The total cost to be incurred for the implementation of the 2021 Share Buyback II is a maximum of IDR 500 billion, including brokerage fees and other costs related to the 2021 Share Buyback II,” wrote LPPF management, in an information disclosure on the Indonesia Stock Exchange (IDX). , Friday (5/11/2021).
Share Buyback II 2021 will be carried out for a maximum of 10% of the company’s paid-up and issued capital, or a maximum of 262,614,878 shares.
“The company estimates that there will be no significant impact on the cost of the Company’s Share Buyback II 2021 and there will be no significant decrease in the company’s revenue as a result of the implementation of the 2021 Share Buyback II,” the management wrote.
The company will limit the maximum price of Share Buyback II 2021 to Rp 4,700 per share. “The Buyback of Shares II 2021 will be carried out either through the Exchange or outside the Exchange by taking into account the provisions of the applicable laws and regulations,” wrote the LPPF.
Referring to IDX data, this Friday, LPPF shares closed stagnant at Rp 3,460/share with daily transaction value of Rp 14.18 billion and trading volume of 4.08 million shares.
This week, the shares of a subsidiary of PT Multipolar Tbk (MLPL) rose 13.44% and in the last month it also rose 32%.
The Company recorded a net loss per share as of December 31, 2020, amounting to Rp 332, while the pro forma net profit (loss) per share if the Share Buyback II 2021 is carried out (assuming the maximum number of share repurchases is carried out) is Rp 391.
“It is hoped that this buyback will not affect the company’s business activities and operations because the company already has sufficient working capital to run its business activities,” the LPPF wrote.
“The management believes that our market is currently undervalued and expects the 2021 Share Buyback II will increase market value,” the LPPF wrote again.
On August 6, 2021, previously LPPF had made its first buyback aka Share Buyback I 2021.
At that time, the company purchased a maximum of 15 percent of the company’s paid-up and issued capital or a maximum of 393,922,000 shares with a maximum price limit of Rp 3,050 per share.
The costs incurred for the implementation of the Share Buyback I in 2021 are a maximum of Rp. 450 billion, including intermediary fees and other costs related to the Buyback of Shares I in 2021.
The Buyback of Shares I in 2021 has been carried out since August 6, 2021 until November 5, 2021.
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