Wednesday, December 06, 2006

Bumi shares buyback so far

PT Bumi Resources Tbk had bought back 653 million shares in the last few weeks or almost one-third of the total amount allowed, and the price has been lifted by Rp100 or 14% from its lowest level at Rp710. But the program has clearly saved the controlling shareholder from defaults on repo & loan, right? If the buyback of remaining shares on the block would create the same price effect, the program would lift Bumi shares price by 42%. Total cost, max Rp2.3 trillion or USD250 million.




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