ID :
24546
Wed, 10/15/2008 - 15:27
Auther :
Shortlink :
http://m.oananews.org//node/24546
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ADRO PLANNING TO BUY BACK SHARES
Jakarta, Oct 14 (ANTARA) - Publicly-listed coal mining company PT Adaro Energy Tbk (ADRO) said on Tuesday it is negotiating with a group of international investors on its plan to buy back its outstanding shares.
"We want to send a signal to the market that ADRO shares are currently undervalued. This happens because our capital market is undergoing a crisis," ADRO President Garibaldi Thohir said in a press statement.
He said a number of international financial institutions which hold ADRO shares in significant numbers had offered the company to buy back the shares.
"We are in the middle of studying the offer seriously," he said.
ADRO had a chance to buy back the outstanding shares to prevent their prices from falling further, he said adding the buyback would give the company another options to raise capital in the future.
Proceeds from the sales of the shares the company planned to buy back could be used to finance its business expansion although the buyback would raise its debt to equity ratio while at the same time strengthening its capital structure, he said.
He expressed hope the buyback would raise investors' confidence in the company.
Therefore, if the buyback was successful it would benefit shareholders and the company would obtain good assets at low prices, he said.
"We want to send a signal to the market that ADRO shares are currently undervalued. This happens because our capital market is undergoing a crisis," ADRO President Garibaldi Thohir said in a press statement.
He said a number of international financial institutions which hold ADRO shares in significant numbers had offered the company to buy back the shares.
"We are in the middle of studying the offer seriously," he said.
ADRO had a chance to buy back the outstanding shares to prevent their prices from falling further, he said adding the buyback would give the company another options to raise capital in the future.
Proceeds from the sales of the shares the company planned to buy back could be used to finance its business expansion although the buyback would raise its debt to equity ratio while at the same time strengthening its capital structure, he said.
He expressed hope the buyback would raise investors' confidence in the company.
Therefore, if the buyback was successful it would benefit shareholders and the company would obtain good assets at low prices, he said.
