Dharma Satya Prepared Rp 100 Billion to Buy Back Shares
JAKARTA - PT Dharma Satya Nusantara Tbk (DSNG), oil palm plantation companies with a market capitalization of Rp 5.4 trillion, plans to allocate Rp 100 billion to buy back the company's shares in the stock market. According to company directors, this policy is taken in order to reduce the impact of market fluctuation in the last few months.
"The company allocated as much as Rp 100 billion for buy back a maximum of 30 million shares," said Djojo Boentoro, President Director DSNG in a the disclosure.
He said the number of shares buy back will be adjusted in proportion to the ratio of the stock split due to the approval of stock split in Extraordinary General Meeting of Shareholders on September 2, 2015.
At the Extraordinary General Meeting of Shareholders (EGMS) on 2 September 2015, the Company has been approved stock split from Rp 100 per share to Rp 20 per share. The stock split was made to reach out and increase the number of retail shareholders of the company.
Despite the potential decline in the value of assets and equity, the buy back policy will not negatively impact the company's business activities. It is because the Company ‘s working capital and cash flow are sufficient. Until June 30, 2015, the company's cash and cash equivalents stood at Rp 549.19 billion, decreased of 48.69% from the end of December 2014 amounted to Rp 1.07 trillion.
The buy back period will be three months since September 8 ,2015 to December 7, 2015. However, Djojo said buy back can be stopped before a period of three months, if necessary. (*)