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PT. AKR Corporindo, Tbk

AKRA Announced Stock Buyback Program – Allocates Max Rp500 Billion

March 13, 2020

JAKARTA, March 13th 2020 - PT AKR Corporindo Tbk (IDX ticker code: AKRA.IJ) today disclosed proposal for Buyback of Shares of the Company in Compliance with the Financial Services Authority Regulation Number 2/POJK.04/2013 on the Buyback of Shares Issued by Issuers or Public Companies in Significantly Fluctuating Market Conditions. 

The Company has allocated the maximum amount of Rp 500 billion toward the Buyback of Shares. The allocation is inclusive of broker-dealer commissions and other costs in relation to Buyback of Shares transactions. The amount will be used for buyback shares up to 172,631,882 shares or up to 4.3% from total issued and paid-in capital of the Company. The transactions will be carried out prudently by the Board of Directors, with the approval of Board of Commissioners.

The Company believes that the buyback of shares can increase investors’ confidence in the Company and the Company's share price can reflect the value that is based on market multiples. The current stock price of the Company is far below the price that the Company believes as a reasonable market price and very far from the fundamentally reasonable price. The Company also considers that the buyback of shares will create value for the Company's shareholders.

SCHEDULE OF BUYBACK OF SHARES

Announcement of Disclosure of Information to OJK and IDX on the  Buyback of Shares :  March 13, 2020

Period of the Buyback of Share    :  March 16, 2020 - June 12, 2020

Mr. Haryanto Adikoesoemo, President Director said, “The Company fundamentals remain solid, with demand for Petroleum & Basic Chemicals increasing during the Quarter I’2020, and we expect the profitability and margins to be sustained. The Company is closely to maintaining the Net Open Position & hedged its exposure for forex and the price movements are effectively passed through to customers”.

“Enquiries for land in Java continue to be good, and government initiatives to boost Investments in Indonesia through various measures will accelerate land sales in JIIPE”. 

“The Company believes that the share buyback will restore investor confidence and lift the share price to a level that reflects fair value, based on historic mean trading multiples.” Said Mr.Haryanto.

The stock buyback will be funded from internal cash generation and will have no adverse impact on business operations or Net Profit.  Based on proforma calculation of Unaudited financial results for 9 months ended 30th September 2019, the annualized EPS will increase by 4.5% and ROE will increase by 40bps to 7.3% (not annualized). For 2020, Company is targeting recurring Net Profit growth of 12-15% supported by steady growth in its Trading and distribution business, Logistic Business and larger contribution from Java Integrated Industrial Port Estate (JIIPE).   Company is closely monitoring potential impact of COVID19 and expects economic activity to revive in second half of 2020

The disclosure is attached & can be downloaded at AKR Company website www.akr.co.id


Division of Investor Relation

PT AKR Corporindo Tbk


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