Matahari Department Store (IDX: LPPF) Plans to Buyback Its Shares

Photo: Matahari Department Store

One of the leading retail companies in Indonesia, PT Matahari Department Store Tbk. (IDX LPPF) plans to buyback its shares. The buyback plan will be implemented in 3 (three) months started from 6 August 2021 until 5 November 2021 and will be conducted either through the IDX or outside the IDX.  

The Company will buyback the shares for a maximum of 15% of its paid-up and issued capital or approximately 393,922,000 shares. The price of the shares will be limited to IDR3,050 per share, therefore the Company expects the cost of the buyback plans will reach a maximum of IDR450 billion. 

The management believes that the Company's stock price is currently undervalued and hopes the buyback plans will boost the stock price. The Company also has sufficient working capital so the implementation of the buyback plan will not affect its business and operation.

As of 31 December 2020, the Company recorded a net loss of IDR 332 per share, while the proforma net loss per share if the buyback plan was carried out (assuming the maximum number of share repurchases was made) was IDR 391. LPPF's stock price increased 2,93% to the level IDR1,930 per share on the last trade this week.