Erajaya expects to spend IDR 319 billion on a buyback
JAKARTA – PT Erajaya Swasembada Tbk (ERAA) allocates IDR 319 billion to repurchase its circulating shares of a maximum 20% of its paid-up capital. This corporate action will be conducted bit by bit, steadily from today (20/5) until August 19, 2022.
Amelia Allen, Corporate Secretary of Erajaya Swasembada, believed that this corporate action would not affect the company’s financial performance. “Assuming that we will be using internal cash to fund this corporate action, our assets and equity will be down IDR 319 billion,” she explained in the information disclosure quoted Friday (20/5).
This corporate action needs no approval from its shareholders through an Extraordinary General Shareholders Meeting, as mentioned in the Financial Services Authority Circular Letter regarding the 18.46% decrease in the IDX Composite or Jakarta Composite Index (JSX) and the current economic situation affected by the COVID-19 pandemic. (LK/ZH)