ISSUER - JAKARTA. The shareholders agreed to buy back shares of PT Surya Citra Media Tbk (SCMA) with a value of Rp 3 trillion.
SCMA Main Director Sutanto Hartono said that all shareholders who attended the extraordinary general meeting of shareholders (EGM) on Wednesday (5/12) approved the corporate action. The number of investors presents reached 86% with ownership of 12 billion shares. SCMA issues 14 billion shares in total.
According to Sutanto, SCMA will hold shares buyback to increase the value of shares by returning the excess cash flow to shareholders. Buyback actions can increase return on equity and have a positive impact on shareholders.
After obtaining the EGMS approval, SCMA will execute this action within 18 months. Sutanto explained, the company will use the time to analyze when is the right conditions to do the buyback.
"We have observed that since the last few months there have been fluctuations in domestic and world exchanges. We will use the 18-months period to review when the right time to buy back and who are the investors who want to release their shares," said Sutanto.
SCMA plans to conduct buyback of maximum 1,46 billion shares or 10% of paid-in capital. (Translator: Barratut Taqiyyah Rafie)
