Waskita Beton Plans Share Buyback of Rp 1 Trillion

By : Aldo Bella Putra | Wednesday, July 26 2017 - 10:10 IWST

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INDUSTRY.co.id - Jakarta - PT Waskita Beton Precast Tbk (WSBP) plans to buy back shares to be implemented over the next 18 months by budgeting Rp1 trillion.

"The buyback is conducted within 18 months, as many as 1.84 billion shares or about 7 percent of the issued and fully paid capital," said Waskita Beton Precast Director of Finance and Risk, MC Budi Setyoni in Jakarta, Wednesday (26/6 / 2017) Was

He said that the corporate action is expected to maximize shareholder value considering the company's share price is currently below the price during initial public offering of shares (IPO) so as not to reflect the fundamental condition and prospect of precast concrete industry in the country.

"This year's revenue target grew by 63 percent and net profit increased 85 percent." The achievement and growth target is our belief in 'buyback'," he said.

Initial shares of PT Waskita Beton Precast Tbk were listed on the Indonesia Stock Exchange (BEI) on September 20, 2016 at Rp490 per share. Today (Wednesday, 26/7), the company's share price with the WSBP trade code moved up 3.54 percent to Rp468 per share position.

Based on analyst consensus, he said that until the end of this year the company's stock can reach Rp700 per share. However, the company expects WSBP shares to reach Rp900 per share.

WSBP's President Director Jarot Subana added that the budgeted "buyback" amounted to internal cash. In this semester there is scheduling cash receipts from disbursement of receivables reached Rp1, 4 trillion.

"Of course more than enough for the needs of 'buyback' so as not to disrupt the expansion and working capital of the company," he said.

He stated that the buyback plan has received approval from the extraordinary general shareholders meeting (RUPSLB) which was held on this day (Wednesday, 26/7).

In the first half of 2017, Waskita Beton Precast Tbk posted revenue up 42.8 percent to Rp2.67 trillion compared to the same period a year earlier. Meanwhile, net profit rose 28 percent to Rp436.4 billion in the first half of this year. (Ant)