Mediacom Prepares Buyback Fund of US$24.7 M

VIVAnews - PT Global Mediacom Tbk will proceed with the buyback program of Rp 300 billion (US$24.7 million) or 20 percent of the paid-in capital. The buyback will use internal fund and is scheduled for three months starting from March 4 until June 4, 2009.

The share buyback will be carried out through the Indonesia Stock Exchange or other ways.

"The company appointed PT Bhakti Securities as the broker of securities trader," said President Director of Global Mediacom, Hary Tanoesoedibjo, on Thursday, March 5.

According to him, the company is planning to keep the share as treasury stock. However, the company may use shares in the treasury stock to be re-released or to repay debts.

The utilization of buyback fund from the internal cash will reduce the amount of assets and equity. Of the total cash of Rp 302.5 billion (US$24.9 million), maximum amount of Rp 300 billion (US$24.7 million) will be used to buy back shares.

The situation, he went on to say, has the potential to cut net profit and equity by Rp 2.5 billion (US$206.4 thousand).

Nevertheless, the share buyback may also increase the company's long-term assets and equity due to the increase in the company's share price.

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Translated by: Bonardo Maulana Wahono