JAKARTA. The plan of PT Bank CIMB Niaga Tbk (BNGA) to conduct a buyback on its 20 million shares, has been approved in its General Meeting of Shareholders (GMS).
Tigor M. Siahaan, President Director of BNGA, said that the maximum transaction value allocated by the company for the buyback was Rp 25 billion. Siahaan said this action was carried out in order to comply with the Financial Services Authority (OJK) regulations. "To follow OJK's rules regarding material risk takers, which part of the remuneration is in shares," Siahaan said on Monday (15/4) when met by idnfinancials.com.
The validity period of the BNGA stock buyback is 180 months. "Since the end of today's meeting," Siahaan said.
Meanwhile, BNGA admitted that it would use its internal funding sources to conduct the buyback. The reason, said Siahaan, is that the company has a pretty good capital condition at the moment. "We also feel that our capital has grown quite well," explained Siahaan. (KR/AR)