ID :
25477
Sun, 10/19/2008 - 22:52
Auther :
Shortlink :
http://m.oananews.org//node/25477
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BAKRIE SUMATRA TO BUYBACK UP TO 20 PERCENT OF ITS SHARES
Jakarta, Oct 19 (ANTARA) - PT Bakrie Sumatra Plantations Tbk plans to buyback up to 20% of its shares from the Indonesia Stock Exchange (BEI.
"That is true. We have planned to buyback the company's shares at a maximum of 20 percent. We are now still processing the plan and in time we will make it known to the public," the company's president director, Ambono Janurianto, said in a press statement received here on Sunday.
He said he had notified the Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) and the BEI of the plan through a letter sent last Thursday.
In the letter the company's finance director, Harry M Nadir, said the company would send an official letter and information needed for the transaction in line with the Bapepam-LK's regulations.
Ambono said the decision to conduct a buyback was made with an aim of restoring investor confidence in the company and giving an optimum benefit to the shareholders.
On the other hand, he said, the company would also gain good assets at a low price.
"We are still making technical and administrative preparations on several options for purchasing back the shares and would choose the best option based upon the corporate condition," he said.
He said the plan would provide an additional option with regard to future capital raising because the shares could be sold again later if the company needed a capital for expansion purposes.
Ambono admitted that the buyback would also raise the company's debt to equity ration. However he said he was optimistic the company could still expand in the future because its capital structure and liquidity were still very strong moreover no debts would be due in the near future.
He said "the company's debts' interest rate is fixed so that its interest burden will be stable," he said. He said the company's strong liquidity could be seen from its EBITDA (earnings before interest, taxes, depreciation and amortization) over Interest Rate which is now reaching 5.25. "It is far above the minimal requirement. So there is no reason to be pressimistic," he said.
He said the company still continued its business as usual and with its business expansion plan in spite of the current global financial crisis which would certainly affect its plans.
"That is true. We have planned to buyback the company's shares at a maximum of 20 percent. We are now still processing the plan and in time we will make it known to the public," the company's president director, Ambono Janurianto, said in a press statement received here on Sunday.
He said he had notified the Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) and the BEI of the plan through a letter sent last Thursday.
In the letter the company's finance director, Harry M Nadir, said the company would send an official letter and information needed for the transaction in line with the Bapepam-LK's regulations.
Ambono said the decision to conduct a buyback was made with an aim of restoring investor confidence in the company and giving an optimum benefit to the shareholders.
On the other hand, he said, the company would also gain good assets at a low price.
"We are still making technical and administrative preparations on several options for purchasing back the shares and would choose the best option based upon the corporate condition," he said.
He said the plan would provide an additional option with regard to future capital raising because the shares could be sold again later if the company needed a capital for expansion purposes.
Ambono admitted that the buyback would also raise the company's debt to equity ration. However he said he was optimistic the company could still expand in the future because its capital structure and liquidity were still very strong moreover no debts would be due in the near future.
He said "the company's debts' interest rate is fixed so that its interest burden will be stable," he said. He said the company's strong liquidity could be seen from its EBITDA (earnings before interest, taxes, depreciation and amortization) over Interest Rate which is now reaching 5.25. "It is far above the minimal requirement. So there is no reason to be pressimistic," he said.
He said the company still continued its business as usual and with its business expansion plan in spite of the current global financial crisis which would certainly affect its plans.
