The buyback will account for around 10 percent of the company's outstanding shares, Investor Daily quoted Vicky Ganda Saputra, corporate finance manager at PT Danatama Makmur, one of Bumi's financial advisors, as saying.
"The maximum price that the company will pay during this buyback is 1,200 rupiah each," Saputra
Another newspaper, Bisnis Indonesia, reported Bumi had submitted the plan to the country's capital markets watchdog, Bapepam. Bumi
said last month it was selling two coal mones to an international investor group in a deal worth $3.2 billion, marking the country's second largest takeover. Saputra
said the company would seek shareholder approval for the buyback and the coal mines sale plan on May 17.She
said the company planned to complete the buyback within 18 months after it gained approval.
Bumi's share price has gained more than 26 percent since the start of the year, outpacing a nearly 19 percent gain in the Jakarta Composite Index <.JKSE>.