JAKARTA – PT Provident Agro Tbk (PALM), a crude palm oil (CPO) manufacturer, spares IDR 78.41 billion to repurchase 110 million shares (buyback), equal to 1.55% of its entire issued and paid-up capital. This corporate action will take place within at least 18 months after gaining approval during the Annual General Shareholders Meeting next month, on March 22, 2022.
Lim Na Lie, Corporate Secretary of Provident Agro, claimed that the repurchased shares would be stored as treasury stock and reoffered in the stock exchange in the future. “The buyback hopefully will not affect the business activities and operations of the company,” Lim Na Lie said in the information disclosure quoted today (11/2).
According to Lim Na Lie, the company’s stock price hopefully will be more positive and stable for shareholders by conducting this corporate action. Furthermore, the treasury stock may then be used to convert equity-based securities and offer an employee stock option plan (ESOP). Then, it may be reclaimed by cutting down the capital as ruled out in the Financial Service Authority (OJK) regulation.
As of January 31, 2022, PALM’s shares amount to 7,119,540,356 units, 44.875% of which belong to PT Saratoga Sentra. PT Provident Capital claims another 44.163%, the public shares IDR 10.348%, while the remaining 0.614% are counted as treasury stock. (LK/ZH)