Jakarta, 03 September 2020 – PT Garudafood Putra Putri Jaya Tbk (“Garudafood” or “the Company”) held an Extraordinary General Meeting of Shareholders (EGMS) related to the corporate action of buying back the Company's shares or share buyback on September 3, 2020 at Hotel Arosa, Jakarta. This corporate action aims to maintain the stability of the Company's share price in the future. The implementation of this EGMS still observes the Covid-19 health protocol of the Ministry of Health of the Republic of Indonesia by implementing a social distance procedure in the room and providing masks and hand sanitizers for the committee and meeting participants.
The EGMS was chaired by Commissioner Hartono Atmadja accompanied by Director Robert Chandrakelana Adjie and Director Paulus Tedjosutikno. The EGMS has approved Garudafood to carry out share buybacks with a maximum limit of 2% of the Company's shares of all issued and fully paid capital with a maximum allocation of funds of IDR 100,000,000,000 (one hundred billion Rupiah). Garudafood assessed that the current unstable market condition is the right momentum to take stock buybacks and reduce the impact of the market which fluctuates significantly.
'It's true, we are going to do a share buyback. This share buyback will later use the company's internal cash as the main source of funding and this will not have a significant impact on the overall financial and operational conditions of Garudafood. This stock will also become treasury stock and one day it can be released back to the public. In addition, the buyback process will be carried out in stages and certainly the objective 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 bought back to be controlled as treasury shares. The management of Garudafood is optimistic that the share buyback will not cause a decline in profits and will not affect the performance and operations of Garudafood.