JAKARTA - PT Surya Citra Media Tbk (SCMA), which operates SCTV, has allocated Rp 500 billion for a buyback of 2,954,934,460 shares, 20% of the company's placed and paid-up capital. The corporate action will take place from June 9 to September 8, 2020.
According to a stock exchange filing published on Tuesday (9/6), the corporate action will result in a loss of interest income on the company's funding. However, it will not affect the funding of the company's operational activities due to its relatively strong working capital and cashflow.
According to the company's Q1-2020 financial report, it has Rp 7.18 trillion in assets, Rp 5.78 trillion in equity, and Rp 311.52 billion in net profit. Following the buyback, its assets and equity will each decrease by Rp 500 billion to Rp 6.68 trillion and Rp 5.28 trillion respectively.
SCMA's management decided on the buyback due to a 18.46% drop in the Jakarta Composite Index from January to March this year due to the coronavirus (COVID-19) pandemic. Such decision can be made without an AGM as stipulated in SEOJK 3/2020. (LK/MS)