PT Industri Jamu dan Farmasi Sido
Muncul Tbk. (SIDO) has announced plans to repurchase shares worth
IDR56bn (approximately $3.4mn), CNBCIndonesia
reports. The programme will cover an estimated 103.7mn shares, or
around 0.35% of the company’s issued stock, as the official release
by the company reveals.
According to a disclosure filed
with the Indonesia Stock Exchange (IDX), management said the
decision was made because the company’s current share price does
not reflect its underlying performance. The repurchased stock will
be retained as treasury shares.
Under Indonesian financial
regulations, Sido Muncul may later reallocate or transfer the
treasury shares in line with Article 14 of OJK Regulation No.
13/2023. This can only be done at least 30 days after the
completion of the buyback, or once the buyback period has
ended.
The company emphasised that the
buyback will not significantly affect its revenue stream or
operations, as it maintains adequate working capital and cash flow.
The maximum repurchase price is set at IDR760 per share, in
compliance with OJK Regulation No. 29/2023. The buyback will run
for three months, from September 23 to 22.
Sido Muncul has mandated PT
Mandiri Sekuritas to execute the repurchases through transactions
on the IDX. The buyback will be funded entirely from internal cash
reserves and not from public offerings, borrowings, or debt.
Management underscored that the plan will not materially impact the
company’s financial health.
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