Salim Ivomas, London Sumatra plan share buybacks with CPO prices slumping 

(Insider Stories) – Plantation companies PT Salim Ivomas Pratama (IDX:SIMP) and PT London Sumatera (IDX:LSIP) have announced they plan to buy back shares from Indonesia Stock Exchange and are preparing funds of around 410 billion rupiah ($42 million) from retained earnings for the deals.

Weriyanti Setiawan, a spokesperson for the Indofood Group, which owns the plantation units via food manufacturer PT Indofood Sukses Makmur (IDX:INDF), said the buyback is part of efforts to build market confidence in the two companies amid weak crude palm oil (CPO) prices.

Salim Ivomas is preparing IDR350 billion to buy back 315 million shares or the equivalent of 2% of its enlarged capital. London Sumatra plans to buy 31 million shares or 0.5% of enlarged capital.

The companies expect to get approval for the buybacks at May 24 shareholder meetings and implement the program for 18 months after gaining approval.

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