Provident Agro budgets Rp 28.93 billion for stock buyback
JAKARTA - PT Provident Agro Tbk (PALM) has budgeted Rp 28.93 billion to carry out a buyback of 110 million shares. The corporate action will be formally decided at the company's EGM on April 8, 2020.
According to a stock exchange filing published on Monday (2/3), the company plans to keep the bought-back shares as treasury stock. In addition, the company will divert the shares within two years through sales in and out of the stock exchange, withdrawal through capital reduction, private placement (management-employee stock option), and conversion of equity shares.
After the plan is approved by the EGM, the company plans to conduct the corporate action within a year from April 13, 2020 to April 12, 2021. The buyback is expected to stabilise PALM's shares and positively affect the shareholders. (LK/MS)