Matahari Department Store (LPPF) Increases Share Buyback

Rabcakmedia.com – PT Matahari Department Store Tbk (LPPF) will make a buyback or share buyback. This retail issuer buyback period will take place from now until May 3 of the following year.

A maximum of 262,614,878 shares or 10% of paid-up and issued capital can be bought back.

Matahari Department Store (LPPF) Sets Share Price

However, the LPPF directors revised stock price the implementation of the buyback which was increased from previously IDR 4,700 per share to a maximum of IDR 7,950 in the IDX public information disclosure, Tuesday (8/3/2022).

LPPF hopes that there will be no major influence on the buyback cost. The buyback execution will not have a major impact on the company's revenue.

The maximum amount of IDR 386 will be a pro forma net loss per share in the event of a share buyback. Please note, until the end of December 2020, LPPF experienced a net loss per share of IDR 332 per share.

Management anticipates that this buyback will not disrupt commercial and operational operations because LPPF has sufficient operational capital to carry out its business activities.

Previously, from 6 August 2021 to 5 November 2021, the LPPF had bought back a total of 64,684,800 shares which was 2.47 percent of the paid-up and issued capital (share buyback I 2021). The buyback will cost a total of IDR 151.80 billion.

Furthermore, on 5 November 2021, the LPPF is again targeting a share buyback of up to 10 percent of the paid-up and issued capital or a maximum of 262,614,878 shares (share buyback II 2021) with a maximum exercise price of IDR 4,700. per share.

A maximum of IDR 500 billion will be issued as buyback costs. From November 5 2021 to February 4 2022, Buyback II has been carried out.

FAQs

Below we have summarized some frequently asked questions about buyback stocks, as follows:

What Happens If A Stock Is Buyback?

A stock buyback will reduce the number of existing shares until each share is worth a larger percentage of the company. With that the earnings per share (Earning per Share/EPS) of the stock increases while the price to earnings ratio (P/E) decreases or the stock price will increase.

Conclusion

Sun Department Store Tbk (LPPF) will make a share buyback or buyback. This retail issuer buyback period will take place from now until May 3 of the following year.

The maximum amount of IDR 386 will be a pro forma net loss per share in the event of a share buyback. Management anticipates that this buyback will not disrupt commercial and operational operations because LPPF has sufficient operational capital to carry out its business activities.