JAKARTA (TheInsiderStories)–Publicly listed tower operator PT Sarana Menara Nusantara Tbk (IDX: TOWR) plans to allocate Rp1.5 trillion (US$104.158 million) to buyback its 5 per cent share, according to the Indonesia Stock Exchange disclosure.
TOWR will buy as many as 5 per cent of the company’s issued and fully paid shares or equivalent to a maximum of 2.55 billion shares. The buybacks will be conducted gradually within 18 months from the approval of the extraordinary general meeting of shareholders that scheduled on August 10, 2018.
TOWR previously conducted a 5-for-1 stock split at the end of June 2018 in order to make the company’s stock trading to be more liquid. The company’s stock price is relatively low compared to the similar companies. The firm started trading the new share’s nominal value on June 28, 2018.
The company’s stake decreased 26.88 per cent to Rp585 per share (year to date) is one of the reasons the company conducts the buyback. In addition, the TOWR has sufficient cash balance to conduct the buyback.
Sarana Menara Nusantara booked Rp518.7 billion in the first quarter of this year, down 7.7 per cent from Rp562.18 billion in the first quarter of last year. The company recorded Rp1.36 trillion in the first quarter of this year, slightly increased from Rp1.31 trillion in the first quarter of last year.
In 2017, TOWR booked Rp2.1 trillion in net income or increased 19 per cent from 2016. The company has 14,854 towers with 25,011 tenants and supported by 1,591 completed tenancy in 2017.