PT Provident Agro Tbk (IDX: PALM), prepared funds of around Rp28.93 billion to buyback its shares and one of its founder, Edwin Soeryadjaja, purchased PT Saratoga Investama Sedaya Tbk (IDX: SRTG) from the market - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian plantation firm, PT Provident Agro Tbk (IDX: PALM), prepared funds of around Rp28.93 billion (US$2.02 million) to buyback its shares, said the company today (07/21). While, one of its founder, Edwin Soeryadjaja, purchased PT Saratoga Investama Sedaya Tbk (IDX: SRTG) from the market.

The management aimed to buyback as much as 110 million shares or equivalent to 1.55 percent of all issued and fully paid capital. To run the plans, the company has appointed PT Indo Premier Sekuritas as the broker. It said, the source of funds for the buyback are from the reserved.

The repurchase of the shares will be carried out in a 12-months, from August 4, 2020 to August 3, 2021. Now, Provident is waiting the approval from the shareholders will be held on July 30. The shares from this buyback will be kept as treasury shares within a maximum of three years from the completion of the buyback.

The producer is a subsidiary of Saratoga Group with a 44.87 percent of stake. The company is a joint venture company between PT Saratoga Sentra Business and PT Provident Capital Indonesia was founded on Nov. 2, 2006 as an oil palm plantation firm.

Until the end of 2016, Provident has eight oil palm plantations located in Sumatra, Kalimantan and Sulawesi. Total embedded land (core and plasma) reaches 25,013 hectares. The company has three palm oil mills with a total capacity of 105 tons an hour. In October 2012, the producer become a listed company on the Indonesia Stock Exchange.

Before the unit announcement, Soeryadjaya, bought Saratoga shares totaling 15.84 million shares from the market with valued Rp36.31 billion during June 24 to July 3. With the purchased, the share owned by the son of the founder of Astra Group, William Soeryadjaja, became 32.43 percent from initially 31.85 percent of shares.

He and Sandiaga Salahuddin Uno founded the investment firm in 1997. Beside Provident, Saratoga also invests in PT Tower Bersama Infrastructure Tbk (IDX: TBIG) shares. At present, the tower provider has more than 11,000 sites and serving more than 18,000 tenants.

The company also invests in PT Mitra Pinasthika Mustika Tbk (IDX: MPMX), a diversified automotive firm that has a market share in retail motorcycles, motorcycle distribution, motorcycle components, lubricating oil, and motorcycle financing. In 2019, the company’ net asset value worth of Rp22.85 trillion, up 44.9 percent from previous year of Rp15.77 trillion. The private equity firm posted a profit Rp 7.37 trillion from 2018 lose Rp6.19 trillion.

US$1: Rp14,300

Written by Editorial Staff, Email: theinsiderstories@gmail.com