Kalbe Farma (KLBF) Plans to Buy Back Shares IDR 1 Trillion

ISSUER NEWS - JAKARTA. PT Kalbe Farma Tbk (KLBF) has announced plans to buy back shares, a move scheduled to take place from May 16, 2024, to May 15, 2025. 

The President Director of Kalbe Farma, Vidjongtius, said that the estimated nominal value of the shares to be repurchased is a maximum of Rp 1 trillion, with a maximum of 625 million shares. KLBF has set a maximum purchase price of Rp 1,600 per share.

"The share buyback is expected to provide confidence to investors about the fundamental value of the company's shares," Vidjongtius disclosed in an information disclosure on Friday (5/4).

This share buyback also provides flexibility for KLBF in managing long-term capital, where treasury shares can be sold in the future at an optimal value if KLBF requires additional capital.

KLBF plans to use internal funds as the source of financing for the share purchase. KLBF estimates a decrease in interest income of about Rp 45 billion as a result of this action.

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Taking into account the decrease in income and the number of shares repurchased, KLBF estimates the proforma earnings per share for the year ending December 31, 2023, to be Rp 59.6 per share, compared to the recorded earnings per share of Rp 59.8 per share.

The buyback will be carried out through transactions on the Indonesia Stock Exchange (BEI). For this, KLBF will use the services of a securities broker.

The cost arising from the share buyback is the service fee for the share purchase transaction on the BEI through a securities broker company, which is about 0.11% of the transaction value.

Referring to Article 9 paragraph (1) of OJK Regulation No. 29 of 2023, the share buyback will be carried out within a maximum period of 12 months after the date of the General Meeting of Shareholders (GMS) that approved this corporate action.

KLBF announced it will hold an Annual and Extraordinary General Meeting of Shareholders on Thursday, May 16, 2024.

For your information, the current price of KLBF is at the level of Rp 1,495 per share after weakening 0.33% until 14:58 WIB trading on Friday (5/4).