PT Adaro Energy Indonesia Tbk (ADRO) has decided to repurchase its shares, known as buyback, amounting to 10% of its issued and paid-up capital at most with a maximum budget of IDR 4 trillion.

In the information disclosure in Indonesia Stock Exchange (IDX) today (5/4), the management of ADRO claimed that the buyback will be carried out gradually within the next 18 months after the approval of Annual General Shareholders Meeting of the company. Meanwhile, the shareholders meeting is scheduled to take place on May 11, 2023. The buyback will use up ADRO’s internal cash as the company has recorded solid and adequate cash flow to fund the entire business and operational activities.

Should the buyback plan be approved during the meeting, the shares will begin to be repurchased on May 12, 2023. Then, the buyback period will last for 18 months starting from said date, and the disclosure of the minutes of meeting will be issued on May 15, 2023.

The management of ADRO also reaffirmed that should the budget run out, or if the number of repurchased shares had met the required amount, ADRO will announce the early termination of buyback period.

In 2021, ADRO had reportedly bought back its shares during the significantly fluctuating market condition using POJK No.2/2013 as reference. Then, after going through 4 extended terms of buyback period, whose last period started from September 16, 2022, to December 16, 2022, ADRO had recorded a buyback of 1 billion shares, equivalent to 3.13% of ADRO’s total issued and paid-up capital. (AM/ZH)

Source: https://www.idnfinancials.com/news/46546/adro-plans-buyback-preparing-idr