JAKARTA — PT Medco Energi Internasional Tbk. (MEDC) has announced plans to distribute a portion of its treasury shares—acquired through previous share buybacks—to its employees and management team. This strategic move is slated for shareholder approval during the Annual General Meeting of Shareholders (AGM) scheduled for June 4, 2026.
According to MEDC Corporate Secretary Siendy K. Wisandana, the shares will be allocated through an employee and management stock ownership program. This initiative extends to staff, board members, and commissioners across the company and its various subsidiaries and affiliates.
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“The company will hold its AGM on Thursday, June 4, 2026, where we will formally request shareholder approval regarding the transfer of shares resulting from our buyback programs,” Siendy stated in a regulatory filing on Wednesday, April 29, 2026.
As of March 31, 2026, Medco held approximately 455.6 million treasury shares, representing 1.81% of its total issued and paid-up capital. From this reserve, the company intends to reallocate 150 million shares—originally purchased during the 2025 buyback period—to support its Employee Share Allocation Program (ESAP) and Management Share Allocation Program (MSAP).
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The ESAP and MSAP have been integral parts of Medco’s incentive structure since 2017. Under this scheme, eligible participants receive shares without the requirement of a direct cash payment, as these allocations serve as performance incentives.
“Because ESAP and MSAP function as incentive programs, there is no payment required from the program participants,” Siendy explained.
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The company maintains that this reallocation is essential, as existing treasury shares are insufficient to meet the projected demand for these incentive programs over the coming years. By moving forward with this transfer, Medco aims to secure the necessary stock for its ESAP and MSAP requirements for the 2026–2028 period.
The distribution process will strictly adhere to prevailing regulations, including the Financial Services Authority (OJK) Regulation No. 29/2023. This regulation mandates that treasury shares must generally be redistributed within three years of acquisition, subject to potential extensions.
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Summary
PT Medco Energi Internasional Tbk. plans to distribute 150 million of its treasury shares to employees and management as part of its ongoing performance incentive programs. This initiative, covering staff, board members, and commissioners across the company and its affiliates, requires formal approval at the Annual General Meeting of Shareholders scheduled for June 4, 2026.
The company, which holds approximately 455.6 million treasury shares, aims to utilize these reallocated stocks to meet incentive requirements for the 2026–2028 period. By utilizing existing shares from previous buybacks, Medco ensures it meets regulatory demands while adhering to Financial Services Authority guidelines regarding the distribution of treasury shares.
