25 March 2025

PT Mahkota Group Tbk (MGRO), a company headquartered in Medan with main business activities engaged in the palm oil industry, has prepared IDR 20 billion to buy back the company's shares that have been released to the public.

The corporate action is summarized in the Public Information Disclosure published on MGRO's official website regarding the buyback plan on March 20, 2025.

President Director of PT Mahkota Group Tbk Usli Sarsi said, the MGRO share buyback plan refers to the Financial Services Authority Regulation (POJK) Number 13 of 2023 concerning Policies in Maintaining Capital Market Performance and Stability in Market Conditions that Fluctuate Significantly; and Number 29 of 2023 concerning Buyback of Shares issued by the Company.

This is to strengthen market confidence in the long-term value and prospects of the company.

“We take this step as an effort to maintain harmony between market conditions and the company's fundamentals. We strive to maintain the trust of stakeholders in the company's business to support sustainable growth,” Usli said, Sunday (3/23/2025).

Usli said, the share buyback fund set at a maximum of IDR 20 billion came from the company's internal cash, including share repurchase costs, brokerage commissions, and other costs related to share repurchases.

He also emphasized that the buyback of MGRO shares will not have a significant impact on the company's operations. The company's revenue is not expected to decrease due to the buyback implementation. However, there will be a record decrease in MGRO's assets and equity by the buyback amount.

“In accordance with POJK Number 13 of 2023, the number of shares we will buy back will not exceed 20% of the total paid-up capital,” he added.

Currently, continued Usli, MGRO's total assets before the buyback based on the Financial Statements (unaudited) which ended on September 30, 2024 were IDR 2.75 trillion. While total equity amounted to IDR 441.77 billion.

With the implementation of the buyback of shares issued by the company, MGRO's total assets and equity will decrease by the maximum buyback amount, to IDR 2.73 trillion for total assets and IDR 421.77 billion for total equity.

Usli emphasized that the buyback will not have a material negative impact on the company's business activities or growth.

“Currently MGRO has sufficient capital and cash flow to finance all business activities, business development, operational activities, and the buyback itself,” Usli explained.

The MGRO share buyback period will be carried out for 3 (three) months, starting from March 21 to June 20, 2025. MGRO stated that it will conduct buybacks at prices that are considered good and reasonable by the company with due regard to applicable regulations. Buyback itself can be done in stages or at once, either through the Stock Exchange or not.

Source : https://sumatra.bisnis.com/read/20250324/534/1864057/mgro-siapkan-rp20-miliar-untuk-buyback-saham