JAKARTA. PT Bank Negara Indonesia (Persero) Tbk (BBNI) arranges its second buyback, allotting IDR 1.7 trillion at most, taken from its internal cash.
According to Mucharom, Corporate Secretary of BBNI, the shares buyback would start today (22/7) and end on October 21, 2021. The number of shares to be repurchased would not exceed 20% of the paid-up capital, and the number of outstanding shares is at least equal to 7.5% of the paid-up capital.
On the other hand, BBNI’s shares are currently undervalued. In June 2021, its Price to Book Value (PBV) is at 0.75x. “It is way below the average PBV within the last 10 years of 1.60,” Mucharom explains in the information disclosure in Indonesia Stock Exchange.
As an additional record, this buyback would drive BBNI’s assets and equity down by IDR 1.7 trillion to IDR 860.74 trillion and IDR 116.04 trillion. However, BBNI is still confident that this corporate action would not negatively affect its business activities.
“[It would not affect the business] considering that the company has sufficient capital and cash flow to perform transactional financing alongside operating business activities,” Mucharom adds. (KR/ZH)