JAKARTA. PT Merdeka Copper Gold Tbk (MDKA) will launch a buyback of as many as 2% of its placed and paid-up shares with a budget of Rp 568 billion.
According to the company's management, the buyback aims to maintain the stability of its stock price, especially if it does not reflect the company's performance.
The repurchased shares will be used to finance MDKA's needs such as the MESOP and ESPO programmes, capital reduction, and equity swaps.
MDKA will seek shareholders' approval to launch the buyback at an EGM on July 29, 2020. The buyback is likely to take place no later than 18 months since the EGM.
MDKA will launch the buyback through and outside the stock exchange. For repurchase through the stock exchange, the company has appointed PT Indo Premier Sekuritas to execute the corporate action. (KR/MS)