Jakarta, 03 September 2020 - PT Garudafood Putra Putri Jaya Tbk ("Garudafood" or "Company") held an Extraordinary General Meeting of Shareholders (EGMS) concerning the corporate action of the share buyback on 3 September 2020 at Hotel Arosa, Jakarta. This corporate action aims to maintain the stability of the Company's share price in the future. The EGMS was held by observing the COVID-19 health protocol determined by the Ministry of Health of the Republic of Indonesia by implementing social distancing procedures in the rooms and providing masks and hand sanitizers for the committee and meeting participants.
The EGMS was chaired by Hartono Atmadja (Commissioner) accompanied by Robert Chandrakelana Adjie and Paulus Tedjosutikno (Directors). In the EGMS, Garudafood has approved a share buyback with a maximum limit of 2% of the Company's shares from issued capital and paid-up capital with a maximum allocation of Rp 100,000,000,000 (one hundred billion Rupiah). Garudafood believes that the current unstable market condition is the right momentum for the share buyback and reduces the impact of a significantly fluctuating market.
'It's true, we will do a share buyback. This share buyback will be funded by the company's internal cash as the main source of funding and this will not have a significant impact on Garudafood's overall financial and operational condition. These shares will become treasury shares and may be sold back to the public in the future. In addition, the buyback process will be carried out in stages and of course, the purpose of this action plan is expected to have a positive impact on shareholders and the Company," said Paulus Tedjosutikno, Director of Garudafood.
The Company plans to keep the shares that have been repurchased as treasury shares. Garudafood's management is optimistic that this share buyback will not decrease profits and will not affect Garudafood's performance and operations.