Semen Gresik and PGN Proceed with Buyback

VIVAnews - State Ministry of State-Owned Enterprises (SOEs) stated that PT Semen Gresik Tbk (SMGR) and State Gas Company (PGN/PGAS) will continue to buyback shares.

Data of Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) as per 7 January 2009 showed that Semen Gresik bought about share back valuing to Rp 192.68 billion (approx. US$17.4 million) of the planned Rp 1 trillion (approx. US$90.3 million).

Meanwhile, PGN took in buyback fund of Rp 2.5 billion (approx. US$226,000) of the planned Rp 450 billion (approx. US$40.67 million). The buyback was due in 12 January 2009.

"Only Semen Gresik and PGAS have reported to proceed with the share buyback," said State Minister of SOEs Sofyan Djalil on Tuesday, Jan 13.

Djalil said that Semen Gresik management will soon hold a general meeting of shareholders to legalize the share buyback, in accordance to the stock authorities' regulation

He said that the share buyback will benefit the company because the shares were bought at low prices. In the future, the shares will be categorized as treasury stock and can be released at any time. 

However, Djalil claimed that the decision to continue the share buyback will be taken after a general meeting of shareholders.

According to him, the share buyback was not the main objective. The aim is to indicate to public investors that SOEs shares are top-notch so the investors will not speculate.

Translated by: Bonardo Maulana Wahono