JAKARTA - PT Japfa Comfeed Indonesia Tbk (JPFA) prepares funds worth Rp 75 billion to buy back shares from today until the next three months. This corporate action is conducted as response to falling prices amid market fluctuations in the impact of the Covid-19 outbreak.
As quoted from the disclosure of company information, Thursday (19/3), this corporate action will reduce the amount of assets and equity of the company, but does not significantly affect operations. Based on the Financial Statements as at 31 December 2020, total assets were recorded at Rp 25.18 trillion, equity as much as Rp 11.44 trillion, net profit of Rp. 1.88 trillion, ROA and ROE respectively at 7.48% and 16.46 %. After this corporate action, total assets will change to Rp 25.11 trillion and equity to Rp 11.37 trillion.
According to the applicable regulations, shares purchased through the buyback process can be resold to investors or shareholders. In addition, companies can use these shares to finance debt bonds that can be exchanged, and capital reduction. (LK)