Monday, January 4, 2010

Bakrieland prepare IDR510 billion for buyback

PT Bakrieland Development Tbk prepare IDR510 billion for buyback program. The company has share buyback at a par value of IDR199 so add the ownership stocks 13,25 million shares.
President Director of Bakrieland Hiramsyah S. Thaib said the buyback was done as the stock price now is very low of the real corporate value.
The book value of Bakrieland stocks per September 30 2009 was IDR231 per share unit. Referring to the recent stock price at IDR200 at average, the price to book value of Bakrieland stocks is only 0.86 times.
The company extends the stock buyback scheme up to 20 percent of the capital placement or DIR510 billion. The corporate action here will be done in the next three months at maximum with the internal cash support. The net gearing ratio position is 8.4 percent. Equity stands at IDR4.5 trillion per December 31, 2008.
In addition to the stock value under the company, the buyback is to anticipate later effort to cooperate with strategic partner. "The macro condition of Indonesia has improved better and so can lure investment from foreign strategic partners in Indonesia by seeking cooperation with robust local partner," said Hiramsyah.
Based on the consideration, he asserted the company plans to continue stock buyback program along with the corporate mission, to increase the value for shareholders.
The property developer emitter integrated with Bakrie Group here has four business units, namely City Property, Landed Residential, Ho-tel & Resort, and infrastructure related property. City Property project includes Wisma Bakrie 1, Wisma Bakrie 2, Ra-su-na Epicentrum at 53.5 hectare plots of land, Bakrie Tower, Epicentrum Walk, The Grove Condominium, The Grove Suites, The Convergence Indonesia and The Wave at Rasuna Epi-centrum.
Residence project includes Bogor Nirwana Residence, Ijen Nirwana Residence Malang, and Batam Nirwana Residence. The hotel projects and resorts include Pullman Bali Legian Nirwana Bali, Nir-wana Bali Resort, Ubud Nirwana Villas, Balikpapan Nirwana Suites and Residences , and Krakatoa Nirwana Resort Lampung.

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