TBS Energi Utama Announces Share Buyback Program

Strategic Move to Enhance Shareholder Value

PT TBS Energi Utama Tbk (TOBA) has announced plans to conduct a share buyback worth up to 825,740,293 shares, representing 10% of its total paid-up capital ¹

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Source 2

https://investasi.kontan.co.id/news/tbs-energi-utama-toba-buyback-82574-ribu-saham-ini-rekomendasi-analis

. The buyback program is scheduled to run from December 24, 2025, to March 24, 2026, giving the company a three-month window to execute the purchases ¹

Source 1

https://investasi.kontan.co.id/news/tbs-energi-utama-toba-gelar-buyback-saham-siapkan-dana-rp-586-miliar

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Financial Capacity and Implementation

The company has allocated Rp586 billion for this buyback program, which will be funded entirely from internal cash reserves ¹

. Management has assured that this expenditure will not significantly impact the company's financial capacity to meet its upcoming obligations. The use of internal funds demonstrates TOBA's strong liquidity position and confidence in its financial stability.

Strategic Objectives

The buyback is part of TOBA's strategy to maintain investor confidence and provide flexibility in managing its capital structure ²

. By reducing the number of outstanding shares, the company aims to enhance long-term shareholder value. Additionally, the buyback is expected to help stabilize the stock price during periods of market volatility, creating a more favorable investment environment.

Market Context and Implications

This corporate action comes at a time when market conditions are challenging, and investor sentiment needs support. By implementing this buyback program, TOBA demonstrates its commitment to protecting shareholder interests and maintaining market confidence. The successful execution of this program could potentially lead to a more stable stock performance in the coming months.