Telkom Plans to Spend up to IDR3 Tln on Share Buyback

PT Telekomunikasi Indonesia said Tuesday it plans to spend up to IDR3 trillion to buy back up to 2.07% of its shares from the market.

The nation's largest telecommunication company by assets and subscribers said in a prospectus for the share buyback it will put aside retained net profit to finance the move.

It said it will seek approval from shareholders, who will meet May 19 to vote on the plan. The company said the buyback will be carried out within 18 months of gaining shareholders' approval.

The buyback is aimed at increasing the company's capability of managing equity capital, which in turn will help increase earnings per share, Telkom said. Telkom shares closed up 1.4% Monday at IDR7,350.

kompas.com