The Annual General Shareholders Meeting of PT Merdeka Copper Gold Tbk (MDKA) has agreed to launch a buyback of a maximum of 1% of its stock, equal to 229,033,658 units. It would allocate an IDR 530 billion fund for the action.
The Corporate Secretary of Merdeka Copper Gold, Adi Adriansyah Sjoekri, explained that the buyback would be conducted in stages no sooner than 18 months after the decision was made. The buyback is considered to be an option to help the company gains the flexibility to maintain the stock price stability, Sjoekri added on Tuesday (25/5).
According to Sjoekri, this action would be carried out only if MKDAs stock price does not reflect its actual performance and value. The buyback program would also act as a long-term incentive (LTI) program for the employees, directors, commissaries, and subsidiaries to help improve their performances.