ID :
24153
Mon, 10/13/2008 - 15:59
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http://m.oananews.org//node/24153
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PGN SETS ASIDE RP450 B IN FUNDS FOR SHARE BUYBACK
Jakarta, Oct 13 (ANTARA) - Publicly-listed state gas company PT Perusahaan Gas Negara Tbk (PGN) has set aside Rp450 billion in funds to buy back its shares in the capital market.
"The Rp450 billion in funds for the share buyback is taken from the company's retained earnings last year," PGN President Director Hendi P Santoso said following a get-together with members of state-owned companies' boards of directors and commissioners here on Monday.
The buyback program is one of the government's efforts to prevent a shortfall in the prices of shares in the stock exchange.
Hendi said the funds originated from the company's internal cash after being deducted from operating expenses, investment cost and working capital.
"So, this will not disrupt the company's performance," he said.
The Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) has issued a new regulation allowing publicly-listed companies to buy back 20 percent of their shares at the most.
In addition, they can also buy back their shares without having to hold a general meeting of shareholders.
Under the old ruling, they were only allowed to buy back a maximum of 10 percent of their shares.
Hendi said the number of PGN shares circulating in the market currently reached 22 billion. "Nearly 45 percent of them is circulating in the stock exchange. These are the shares we will buy back," he said.
But he stopped short of revealing when the buyback program would start.
He said PGN had appointed Bahana Sekuritas as its buyback broker.
Meanwhile, Frans Sunito, president director of state highway operator PT Jasa Marga, said the company had aside Rp300 billion in funds to buy back its shares.
The funds originated from the company's internal cash, he said.
"The price of Jasa Marga shares currently falls short of their book value. Their value already falls by up to 50 percent so now is the time to buy back the shares," he said.
"The Rp450 billion in funds for the share buyback is taken from the company's retained earnings last year," PGN President Director Hendi P Santoso said following a get-together with members of state-owned companies' boards of directors and commissioners here on Monday.
The buyback program is one of the government's efforts to prevent a shortfall in the prices of shares in the stock exchange.
Hendi said the funds originated from the company's internal cash after being deducted from operating expenses, investment cost and working capital.
"So, this will not disrupt the company's performance," he said.
The Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) has issued a new regulation allowing publicly-listed companies to buy back 20 percent of their shares at the most.
In addition, they can also buy back their shares without having to hold a general meeting of shareholders.
Under the old ruling, they were only allowed to buy back a maximum of 10 percent of their shares.
Hendi said the number of PGN shares circulating in the market currently reached 22 billion. "Nearly 45 percent of them is circulating in the stock exchange. These are the shares we will buy back," he said.
But he stopped short of revealing when the buyback program would start.
He said PGN had appointed Bahana Sekuritas as its buyback broker.
Meanwhile, Frans Sunito, president director of state highway operator PT Jasa Marga, said the company had aside Rp300 billion in funds to buy back its shares.
The funds originated from the company's internal cash, he said.
"The price of Jasa Marga shares currently falls short of their book value. Their value already falls by up to 50 percent so now is the time to buy back the shares," he said.
